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Bic Camera to make Sofmap consolidated subsidiary for 2 bil. yen(Kyodo News International (Tokyo) (KRT) Via Thomson Dialog NewsEdge) Jan. 5--TOKYO -- Bic Camera Co. will acquire an absolute majority of outstanding voting shares in Sofmap Co., an electric appliance retailer that has strength in purchasing and selling used personal computers, for a total of 2 billion yen next month, the two firms said Thursday. Under the deal, Bic Camera, a major electric appliance store operator, will acquire 5,100,000 common shares and 7,577,500 preferred shares in Sofmap on Feb. 28 through third-party allotment with the aim of boosting their business alliance, especially in the field of used PC business. By obtaining the new shares, Bic Camera will have a 61.56 percent of stake in Sofmap, up from the current 14.47 percent. "PCs are one of our main products and we believe obtaining expertise in secondhand products should boost customers' convenience such as by accepting products from customers," Masaaki Kanazawa, managing director of Bic Camera, said at a news conference. Sofmap President Katsuji Sakuramoto said at the same news conference the company has been suffering from sluggish sales in recent years due to falling product prices and competition from rivals but it aims to make "a V-shape recovery" from the next fiscal year by sharing business expertise and enhancing cooperation in distribution and original product development under the deal. Sofmap projects it will incur an extraordinary loss of about 9 billion yen in its current business year through the end of February due to impairment of fixed assets, but that having liability in excess of assets can be avoided due to the issuance of new shares. Sakuramoto will be replaced with Susumu Noguchi, a Bic Camera director, on Feb. 28. The same day, Sofmap revised its earnings projections for the current business year. The company now expects to incur a group net loss of 9.3 billion yen on sales of 100 billion yen, compared with its October projection of a net loss of 460 million yen on sales of 101.4 billion yen. Sofmap is listed on the Tokyo Stock Exchange's Second Section and Bic Camera is an unlisted company. |