News Releases
Business and Capital Alliance between Yahoo Japan and SMBC Group(2/2)
Yahoo Japan Corporation
The Japan Net Bank, Limited
Sumitomo Mitsui Banking Corporation
Business and Capital Alliance between Yahoo Japan and SMBC Group
TOKYO, June 29, 2006 --- Yahoo Japan Corporation (“Yahoo Japan,” President: Masahiro Inoue), The Japan Net Bank, Limited (“Japan Net Bank,” President: Shuichi Fujimori), and Sumitomo Mitsui Banking Corporation (“SMBC,” President: Masayuki Oku) announced that they had entered into a basic agreement on business alliance and a capital alliance agreement today as agreed on March 30, 2006.
1.Outline of business alliance
Yahoo Japan and Japan Net Bank will jointly develop and provide new products and services with their customers by leveraging their brand names, customer bases, expertise, and experiences. As a first step, Yahoo Japan and Japan Net Bank will provide participants in the Internet “Yahoo! Auction” with a new service to enhance user convenience of payment and settlement. The new service will enable a successful bidder participating in “Yahoo! Auction” to easily specify seller’s bank account and remit the purchase price if both of them have bank accounts at Japan Net Bank. Two companies will advance the preparations with a target of introducing the new service in November 2006. In addition, Yahoo Japan will provide advanced, secure and convenient settlement and financial services closely linked to its current services and “Yahoo! Japan ID.” On the other hand, Japan Net Bank will try to improve user convenience and increase its customer base by offering more user friendly Internet-based payment and settlement services reflecting users’ consumption patterns.
2.Outline of capital alliance
Towards the launch of new payment and settlement service, Japan Net Bank will increase its capital on September 29, 2006. At the same time, SMBC and Yahoo Japan will continue to consider establishing a bank holding company subject to regulatory approval.
(1) Issuance of common shares
| (i) Number of shares to be issued | : 176,200 shares |
|---|---|
| (ii) Aggregate amount of issue price | : JPY 13,215 million (JPY 75,000 per share) |
| (iii) Companies to be allocated to and number of shares to be allocated |
|
| (iv) Payment date | : September 29, 2006 |
(2) Issuance of nonvoting shares with acquisition clause
| (i) Number of shares to be issued | : 283,800 shares |
|---|---|
| (ii) Aggregate amount of issue price | : JPY 21,285 million (JPY 75,000 per share) |
| (iii) Company to be allocated to and number of shares to be allocated | : Yahoo Japan 283,800 shares (Amount to be paid: JPY 21,285 million) |
| (iv) Payment date | : September 29, 2006 |
Upon obtaining an approval to become a major share holder of Japan Net Bank from the regulatory authority, Yahoo Japan will own 40% of the total voting rights of Japan Net Bank.
3.Schedule (planned)
| On September 29, 2006 | : Capital increase by Japan Net Bank |
|---|---|
| In November 2006 | : Launch of new payment and settlement service |
Appendix
Outline of Yahoo Japan Corporation:
| Company name | Yahoo Japan Corporation |
|---|---|
| Businesses description | Internet Advertising business, Broadband business, Auction business, Other businesses |
| Date of establishment | January 31, 1996 |
| Head office | 10-1, Roppongi 6-chome, Minato-ku, Tokyo, Japan |
| Representative | President & CEO: Masahiro Inoue |
| Capital stock | JPY 7,032 million (as of March 31, 2006) |
| Number of employees | 1,940 (as of March 31, 2006) |
| Principal shareholders (Name and percentage of shares outstanding) |
SOFTBANK CORP. 41.1% Yahoo! Inc. 33.4% (as of March 31, 2006) |
Outline of The Japan Net Bank, Limited:
| Company name | The Japan Net Bank, Limited |
|---|---|
| Businesses description | Banking |
| Date of establishment | September 19, 2000 |
| Head office | 1-1, Nishi-Shinjuku 2-chome, Shinjuku-ku, Tokyo, Japan |
| Representative | President: Shuichi Fujimori |
| Capital stock | JPY 20,000 million (as of March 31, 2006) |
| Number of employees | 86 (as of March 31, 2006) |
| Principal shareholders (Name and percentage of shares outstanding) |
Sumitomo Mitsui Banking Corporation 57.0% Nippon Life Insurance Company 10.0% Fujitsu Limited 10.0% (as of March 31, 2006) |
Outline of Sumitomo Mitsui Banking Corporation:
| Company name | Sumitomo Mitsui Banking Corporation |
|---|---|
| Businesses description | Banking |
| Date of establishment | June 6, 1996 |
| Head office | 1-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo, Japan |
| Representative | President: Masayuki Oku |
| Capital stock | JPY 664,986 million (as of March 31, 2006) |
| Number of employees | 16,050 (as of March 31, 2006) |
| Principal shareholders (Name and percentage of shares outstanding) |
Sumitomo Mitsui Financial Group, Inc. 100.0% (as of March 31, 2006) |
