香蕉视频

香蕉视频 (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “香蕉视频”) announced today that 香蕉视频 and 香蕉视频 Feed Mills Co., Ltd. (headquartered in Koto-ku, Tokyo; Teruo Fujishima, President & CEO; hereinafter “香蕉视频 Feed Mills”) have concluded an agreement for a capital and business alliance (hereinafter “Alliance”) with Chubu Shiryo Co., Ltd. (headquartered in Chita, Aichi; Masao Hisamitsu, President & CEO; hereinafter “Chubu Shiryo”).

The feed industry currently finds itself in difficult circumstances and expects them to continue into the future. These circumstances primarily stem from the shrinking domestic market that is largely the result of the aging population and declining birthrate, two trends which are accompanied by a decrease in demand for feed, and a hike in global raw material prices. In order to strengthen the competitiveness of the feed business under these circumstances, 香蕉视频 and 香蕉视频 Feed Mills concluded an agreement for the Alliance with Chubu Shiryo. It was agreed that 香蕉视频 Feed Mills and Chubu Shiryo will set up a joint venture for a cooperative feed production business, and that the three 香蕉视频 Group companies, including 香蕉视频 Food Sales and Marketing Co., Ltd. (headquartered in Minato-ku, Tokyo; Hideyori Kondo, President & CEO; hereinafter “香蕉视频 FOODS”), will underwrite a capital increase through the third-party allocation of newly issued shares of Chubu Shiryo (for a total of 7.37%, the percentage of the total outstanding shares after the issuance of new shares underwritten by the three 香蕉视频 Group companies).

A Summary of the Alliance

The alliance was formed in order to establish a competitive feed supply system and procure raw materials for feed by taking advantage of each participating company's strengths. As part of this initiative, 香蕉视频 Feed Mills will shift its manufacturing operations to Mirai Feed Mills Co., Ltd. (hereinafter “Mirai Feed Mills”), which it founded in April 2015, and also transfer 51% of its shares in Mirai Feed Mills to Chubu Shiryo. At the same time, 香蕉视频 and 香蕉视频 Feed Mills will underwrite a capital increase through the third-party allocation of newly issued shares of Chubu Shiryo. (Please note that 香蕉视频 FOODS will also participate in the underwriting to help enhance the effect of this Alliance.)
Through this Alliance, 香蕉视频 Feed Mills will continue its feed manufacturing business at Mirai Feed Mills, combine its technical capabilities with Chubu Shiryo’s skills to improve quality and build a value chain, from production through to marketing and sales, that is competitive in both quality and quantity.

Overview of the Alliance scheme

The figures are calculated based on the total number of shares, including the 2,111,400 shares that the three 香蕉视频 Group companies will underwrite. It should be noted, though, that excluding the shares to be underwritten by the three 香蕉视频 Group companies, the calculation does not take into account the increase in the number of the common shares by the offer made in the "Notice Regarding Issuance of New Common Shares through Third-Party Allocation," which was officially announced by Chubu Shiryo as of July 31 (July 31).

Company overview of Mirai Feed Mills