September 14, 2004
On June 14, 2004, Kanematsu issued \10 billion worth of unsecured non-detachable warrants, and the conversion of the entire amount was completed on Sept. 13.
In the Company's medium-term management plan “New KG200,” launched in February 2004, the management specifies as its goal an equity ratio of 10%. Through the early and complete conversion of these convertible bonds, we have made dramatic progress in realizing this goal. Moreover, we have achieved an accelerated repayment of loans as well as a substantial improvement in the debt-equity ratio.
In order to establish a sound financial position, in New KG200 we identify the strengthening of our sales capabilities as our foremost priority.
Progress in the conversion of convertible bonds to equity shares
1. Name of convertible bond:
Kanematsu Corp.'s 2nd issue of unsecured non-detachable warrants
(Non-detachable warrants with a special clause for non-subordination to other bonds traded solely in Japan)
2. Cumulative conversion amount: \10 billion
(Conversion rate: 100%)
3. Category of equity shares: Ordinary shares
4. Total number of shares issued: 66,833,051
Note: This document is intended as an announcement to the media for release to the general public, notifying them of our second issuance of unsecured non-detachable warrants (non-detachable warrants with a special clause for non-subordination to other bonds traded solely in Japan), and was not created for the purpose of soliciting investments.