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Tokyo, Japan - As previously announced, Sony Corporation established StylingLife Holdings (“SLH”), a holding company for Sony’s group of retail businesses (comprised of PLAZASTYLE CORPORATION, LightUp Shopping Club Inc., B&C Laboratories Inc., CP Cosmetics Inc., Maxim’s de Paris Corporation, and Lifeneo Inc.), with the intention of enabling the independent management of these retail businesses by their own management and employees. In June 2006, 51% of SLH’s stock was sold to a 100% subsidiary of Nikko Principal Investments Japan Ltd.
As outlined below, Sony has sold an additional portion of its stock held in SLH.
We expect that the three companies mentioned below that have become shareholders of SLH will be strong business partners for driving the growth of these retail businesses going forward.
At the time of the announcement in February 2006 of the basic agreement with Nikko Principal Investments Japan Ltd. to sell 51% of SLH’s stock, Sony also announced that “in order to support the independence of this retail business group Sony plans to gradually reduce its stake in the holding company.” Carrying out today’s sale of stock is consistent with this aim.
1. Details of the Stock Sale
|(1)||Purchasers and number of shares sold:|
|Mitsui & Co., Ltd.||22,500 Shares||(15% of total outstanding stock in SLH)|
|Tokyu Corporation||12,000 Shares||(8% of total outstanding stock in SLH)|
|SENSHUKAI Co., Ltd||4,500 Shares||(3% of total outstanding stock in SLH)|
|(2)||Number of shares retained by Sony after the sale:|
|34,500 Shares||(23% of total outstanding stock in SLH)|
2. Impact on Sony’s Financial Results
Although Sony is currently conducting a detailed analysis of the effect of this sale of stock on Sony’s Consolidated Income before Income Taxes, Sony anticipates a gain on change in interest of approximately 9 billion yen. This impact is not reflected in Sony’s consolidated forecast for the fiscal year ending March 31, 2007 announced on October 19, 2006.