Skip Navigation

Home > Topics > 2003 > Hitachi Capital Announces Its Intention to Buy the Equity Share of UNUM Japan

Please view PDF here, when you print. (32KB)

5th December, 2003

Hitachi Capital Corporation

Hitachi Capital Announces Its Intention to Buy the Equity Share of UNUM Japan

5th December, 2003, Hitachi Capital Corporation ("Hitachi Capital") has decided, at the Extraordinary Board of Directors' Meeting held on 5th December , 2003, to acquire 100% of the issued and outstanding shares of UNUM Japan Accident Insurance Co., Ltd. (non-listed, the "Company") subject to the approval of Financial Services Agency required for important stockholder.

1.Objective of this transaction

Hitachi Capital has a long standing experience, with our customers of various loans and leases, of providing insurance related or other types of services. Now we have determined to acquire all shares of the Company in order to provide better ever services utilizing our Hitachi Capital group cooperation.

2.Description of the Company

(1) Corporate Name UNUM Japan Accident Insurance Co., Ltd.
(2) Representative Peter S. Adams, President
(3) Address 6-3, Sanban-cho, Chiyoda-ku, Tokyo
(4) Established 21st June, 1994
(5) Business activities Non-life Insurance
(6) Fiscal year-end March
(7) Number of Employees 59
(8) Major Offices Head office only
(9) Capital ¥ 4.6 billion
(10) Number of shares issued outstanding 92,000 shares
(11) Shareholder UnumProvident Corporation (100%)
(12) Financial Results at the FY Ending March, 2003 (millions in yen, rounding off)
Revenue 4,089 Total Assets 4,650
Operating Loss 182 Net Assets 1,928
Net Loss 185  

3.Number of Shares to be Acquired, Purchase Price, and Status Thereafter

(1) Number of Shares to be Acquired 92,000 shares
(2) Purchase Price Approximately ¥ 2.5 billion
(3) Status Thereafter 92,000 shares by Hitachi Capital Corporation (100%)

4.Schedule

(1) Extraordinary Board of Directors’ Meeting 5th December, 2003
(2) Planned Date of the Certificate Delivery 15th January, 2004

5.Forecast of the Financial Results

The significance of this transaction to Hitachi Capital’s consolidated financial position is negligible.

6.Future Management

The Company will aim to be a profitable non-life insurance company targeting niche markets,which can utilize the synergy with Hitachi Capital.

Additionally, going to be supported by Sompo Japan Insurance Inc. in achieving smooth operation, the Company will try to provide the better customer services ever.

The existing products currently provided by the Company will be kept in its current situation with expert support from UnumProvident Corporation.

[Reference]

Description of UnumProvident Corporation (as of 31st December, 2002)

Corporate Name UnumProvident Corporation
Address 1 Fountain Square Chattanooga, Tennessee 37402
Representative Thomas R. Watjen
Shareholders’ Equity $6,843.2 million
Established 30th June , 1999
Premium Income $7,453.1 million
Number of Employees 13,800 (consolidated)

Description of Hitachi Capital (as of 31st March, 2003)

Corporate Name Hitachi Capital Corporation
Address 15-12, 2-chome, Nishi-shinbashi, Minato-ku, Tokyo
Representative Kaichi Murata, President
Capitalization ¥ 9,459 million
Incorporation 30th August, 1960
Consolidated Revenue ¥ 1,746.9 billion
Number of Employees 3,554 (consolidated)