Tokyo, November 15, 2001 -- KDDI Corp. decided to transfer assets to a trust with beneficiary rights. For more details, please see below.
1. |
Reason for the transfer of assets to trust |
KDDI transferred assets to the trust with beneficiary rights as a way to reduce interest-bearing debt and to improve its financial position. |
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2. |
Summary of assets |
Name |
Location |
Approximate book value (land/building) |
Transfer price |
Current situation |
KDDI Building |
2-3-2 Nishi-Shinjuku, Shinjuku-ku |
17.4 billion yen |
187.4 billion yen for all four buildings. |
Used by KDDI |
KDDI Otemachi Building |
1-8-1 Otemachi, Chiyoda-ku |
10.6 billion yen |
KDDI Osaka Building |
2-7-72 Shiromi, Chuo-ku |
11.3 billion yen |
KDDI Nagoya Building |
1-18-33 Nishiki, Naka-ku, Nagoya-shi, Aichi-ken |
1.5 billion yen |
Total |
|
40.8 billion yen |
187.4 billion yen |
The above assets were transferred to a trust of The Yasuda Trust and Banking Co., Ltd. on September 28th, 2001, and who then obtained beneficiary rights to the trust. KDDI and Yasuda Trust also signed fixed-term building rental contracts on September 28th, 2001.
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3. |
Summary of transferee |
Name |
Central Tower Estate Co. |
Address |
Chiyoda-ku, Tokyo |
Representative |
Shigeru Sugimoto |
Capital |
10 million yen (as of November 15th, 2001) |
Major shareholder |
Central Tower Holdings Co. (Cayman SPC) |
Main business |
Acquisition and disposal of the beneficiary rights to the trust |
Relationship to KDDI |
There is no capital relationship or transfer of board members between KDDI and Central Tower Estate |
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4. |
Transfer date |
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November 16th, 2001 (Expected date of signing the transfer contrat for interest in trust and the actual exercise of transfer) |
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5. |
Forecast |
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The expected profit of 140 billion yen resulting from the transfer of assets to a trust with beneficiary rights will be accounted for as extraordinary profit on the consolidated and non-consolidated financial statements for the year ending March 2002. |
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