News Releases from Headquarters


Company: Hitachi, Ltd.
President: Etsuhiko Shoyama
Head Office: 4-6, Kanda-Surugadai, Chiyoda-ku, Tokyo
TSE: 6501

Company: Nissei Sangyo Co., Ltd.
President: Noriaki Higuchi
Head Office: 1-24-14, Nishi-Shimbashi, Minato-ku, Tokyo
TSE: 8036

New Share Issue and Allocation at Corporate Split

  At meetings of their boards of directors today, Hitachi, Ltd. (Hitachi”) and Nissei Sangyo Co., Ltd. (“Nissei Sangyo”) passed the following resolution on the number of new shares to be issued by Nissei Sangyo and allocated to Hitachi in consideration of the reorganization of the Hitachi Group's instruments and semiconductor manufacturing equipment business announced on February 22, 2001.

1. New share issue and allocation
(1) Type of shares to be issued: Par value shares of common stock of Nissei Sangyo
(2) Par value: ¥50
(3) Number of shares: 50,000,000
(4) Allocation method:
In accordance with the succession of Hitachi's Instruments and Semiconductor Manufacturing Equipment businesses, all of the new shares to be issued by Nissei Sangyo will be allocated to Hitachi.
(5) Calculation method:
Hitachi requested PricewaterhouseCoopers Financial Advisory Services Co., Ltd. and Nissei Sangyo requested Goldman Sachs (Japan) Ltd. to fairly and impartially value the business to be separated from Hitachi and the corporate value of Nissei Sangyo, and to calculate the number of new shares to be issued. The resolution was based on discussions between Hitachi and Nissei Sangyo that referred to the results of these valuations.
(6) Valuation method used by third party institutions:
To determine the value of the business to be separated, PricewaterhouseCoopers used the DCF (discounted cashflow) method and the market price method (the current price comparison method was used for the businesses Hitachi is separating off), and Goldman Sachs used the DCF method and the trading multiple analysis to evaluate the value of the business to be separated and the corporate value of Nissei Sangyo and also took into account the (dilution) effect of the new issue on the earnings per share of Nissei Sangyo's shares.

2. Schedule
Signing of split agreement: May 24, 2001 (scheduled)
Shareholders' Meeting of Nissei Sangyo: June 26, 2001 (scheduled)
Date of split: October 1, 2001 (scheduled)

For Hitachi, Ltd., this transaction is considered a corporate split without approval of shareholders meeting as defined by Article 374-22 of the Commercial Code.


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WRITTEN BY Corporate Communications Division
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