Kanebo to cede effective control over management to state-run IRCJ.

Japan Weekly Monitor, July, 2004

TOKYO, June 28 Kyodo

Struggling textile maker Kanebo Ltd. said Monday it will float 50 billion yen in new shares in September for sale to Sumitomo Mitsui Banking Corp. and the state-backed Industrial Revitalization Corp. of Japan, ceding effective control over its management to the national entity.

The 50 billion yen to be raised through a third-party share allotment scheme will comprise 20 billion yen in deferred shares bound for the IRCJ and 30 billion yen in preferred shares for the main creditor bank, Kanebo said.

The acquisition of the deferred shares will give the IRCJ a combined 50.6 percent of all Kanebo's outstanding shares with voting rights, thus placing the textile maker under the effective control of the state entity. Kanebo...