Announcement on Share Acquisition of Sportsplex Japan
No. 08-002
Feb 28, 2008
KONAMI CORPORATION
KONAMI CORPORATION (hereinafter referred to as “Konami”) hereby announces that pursuant to resolutions adopted at the Board of Directors’ meeting of Konami held on February 28, 2008, Konami decided to acquire 31,400 shares (86.46 percent of total outstanding shares) of Sportsplex Japan (hereinafter referred to as “SPJ”), a consolidated subsidiary of Tokyo Electric Power Company, Inc., and concluded a share transfer agreement.
1. Objectives of Share Acquisition
SPJ operates 13 fitness clubs in the Tokyo metropolitan area and provides high-quality services at facilities mainly located in the vicinity of the station, embracing its concept of realizing the quality of life.
(1) Konami intends to further improve facility services by offering its operating know-how, a wide variety of exercise programs and self-developed health-related machines to facilities run by SPJ.
(2) Konami aims to expand the market share by combining SPJ’s facilities located in a favorable area and high-quality services with Konami’s technological and service capabilities.
With above purposes, Konami acquires 31,400 shares of SPJ and expands the Health & Fitness business which attracts increasing attention, while demonstrating the synergy effect with SPJ.
2.Outline of Target Company
| (1) Registered name | Sportsplex Japan Co., Ltd. |
|---|---|
| (2) Main business | Operation of fitness clubs and instruction at fitness clubs Consultation on management and operation of sports clubs |
| (3) Date of incorporation | April 19, 2000 |
| (4) Head office location | 4-1-27 Akasaka, Minato-ku, Tokyo |
| (5) Representative | Makoto Misu, CEO |
| (6) Net sales | 5,858 million yen (For the year ended March 31, 2007) |
| (7) Capital | 710 million yen (As of March 31, 2007) |
| (8) Number of employees | 138 employees (As of September 30, 2007) |
| (9) Major shareholder | Tokyo Electric Power Company, Inc. 31,400 shares (86.46%) |
3.The Counter Party the Share Acquired from
| (1) Registered name | Tokyo Electric Power Company, Inc. |
|---|---|
| (2) Representative | Tsunehisa Katsumata, President |
| (3) Head office location | Chiyoda-ku, Tokyo |
| (4) Main business | Integrated energy services |
| (5) Relationship to Konami | None |
4.Schedule of Acquisition
| February 28, 2008 | Date of resolution at the Board of Directors’ meeting Date of conclusion of the share transfer agreement |
|---|---|
| March 6, 2008 (planned) | Date of share transfer |
5. Future Forecast after the Share Acquisition
SPJ will become a consolidate subsidiary of Konami after the share acquisition. The influence on our consolidated operating results by this acquisition will be minor for fiscal year ended March, 2008.
