In accord with their previous basic
agreement, Asahi Chemical Industry Co., Ltd. (Asahi
Chemical; Head Office, Tokyo; President, Kazumoto Yamamoto)
today concluded the final agreement for the transfer
of its food products business to Japan Tobacco Inc.
(JT; Head Office, Tokyo; President, Masaru Mizuno).
The decision for this strategic transfer
has been made in the context of the business structure
reformation now in progress, in accordance with the
new corporate business portfolio strategy of Asahi Chemical.
Following its transfer, the food products
business will hold a core position in the JT Group,
which is pursuing the aggressive development of food
business operations as a central pillar of its business
diversification program. We are confident that the transfer
presents the opportunity for further development of
the food products business, and we will continue to
maintain our close cooperative relationship with JT.
The essentials of the transfer agreement
are as follows.
Scope of transfer
The transfer comprises all of the tangible
assets, business rights, and other assets of the food
products business of Asahi Chemical, including its frozen
food, seasoning and flavor enhancer, bakery product,
breadmaking material, and other operations, and eight
related subsidiaries – Asahi Foods, Sunburg, Iipingshang
Food, Asahi Shokuzai, Yongo, Nihon Shokuzai Kako, Thai
Foods International, and Hans Continental Smallgoods.
Transfer price: Approx. ¥24,000
million
Gains realized in transfer:
Approx. ¥10,000 million
Note: The amounts shown are
based on calculations in progress relating to the value
of the transfer assets and liabilities as of June 30,
1999 and to the transfer costs; the actual amounts may
therefore differ somewhat from theamounts shown here.
Annual sales of transferred business:
Approx. ¥45,000 million
(projected for 1999; consolidated-base)
Total assets of transferred business:
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Non-consolidated: Approx. ¥17,000 million |
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Consolidated: Approx. ¥21,000 million |
Employees of transferred business:
Approx. 1,300 in total (including
370 Asahi Chemical employees)
Note: Personnel engaged in the food products business
will be taken into the JT Group while maintaining and
continuing their current conditions of employment and
remuneration.
Date of transfer: July 1, 1999
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