TIDM35SV
RNS Number : 5073R
Pioneer Corporation
30 April 2009
For Immediate Release
April 30, 2009
Pioneer Announces Issuance of New Shares Through
Third-Party Allotment and
Shelf Registration for Issuance of New Shares
TOKYO - Pioneer Corporation (hereinafter "Pioneer") announced that it resolved,
at a meeting of its board of directors held on April 28, 2009, to issue its new
shares through a third-party allotment and to file a shelf registration
statement for such issuance of new shares as described below. It is expected
that such issuance of new shares will be completed before the end of June this
year. The issue date or the closing date is to be determined at a meeting of the
board of directors to be held later and will be announced once they are
determined. It is also possible that the terms and conditions of issuance may be
modified as a result of discussions with the party to which new shares are to be
allotted.
1.Purpose and Reason of Issuance of New Shares Through Third-Party Allotment and
Shelf Registration
As described in more detail in a separate press release entitled "Pioneer
Announces Medium-Term Management Plan" announced by Pioneer , Pioneer will
position the Car Electronics business, with its outstanding
technological expertise, product lineup and brand power, as a core business. As
a means to grow the Car Electronics business, in the OEM business, Pioneer is
seeking to bolster ties with major clients, as well as fulfill its duties as a
supplier and meet the expectations of automakers. In addition, Pioneer is
working hard to improve its financial position. Given that it is still
projecting considerable business restructuring expenses in fiscal 2010, the year
ending March 31, 2010, Pioneer believes it must generate cash and boost equity
capital. As a part of such efforts, Pioneer determined to issue its new shares
to Honda Motor Co., Ltd. (hereinafter "Honda"), one of its major clients in the
OEM business, through a third-party allotment. For such issuance of the new
shares through a third-party allotment, Pioneer filed on April 28 a shelf
registration statement for issuance of new shares with the Director-General of
the Kanto Local Finance Bureau.
2.Planned Issue Period under Shelf Registration
The period from the effective date of the shelf registration to the date on
which a period of one year shall have elapsed.
(expected to be from May 9, 2009 to May 8, 2010)
3.Amount and Use of Funds to be Raised
(1)Amount of funds to be raised
Aggregate issue price:
2,499,000,000 yen
Estimated costs of issuance:
17,750,000 yen
Estimated net proceeds:
2,481,250,000 yen
(2)Use of funds
The funds to be raised through the issuance of new shares will be applied to
working capital. In particular, the funds will be applied to a part of research
and development expenses for the Car Electronics business, which will be
positioned as a core business of Pioneer.
(3)Scheduled timing of expenditure of funds
The second quarter (from July to September) of fiscal 2010, the year ending
March 31, 2010, until which time the funds will be held in the current account
of Pioneer.
(4)Rationale for the use of funds
Pioneer believes that application of the funds to a part of research and
development expenses of the Car Electronics business, which will be its core
business, will contribute to further enhancing proposal capabilities and quality
of products, centering on car navigation systems, and improving the expectations
and trust of clients, thereby enhance the corporate value of Pioneer.
4.Business Results for and Equity Finance Executed in the Past Three Years
(1)Consolidated business results for the past three years
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
| (In millions of yen except per share information) |
+------------------------------------------------------------------------------------------------------------------------+
| | | Year ended March 31 |
+------------------------------+-+---------------------------------------------------------------------------------------+
| | | 2006 | | 2007 | | 2008 |
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
| Operating revenue | | JPY754,964 | | JPY797,102 | | JPY774,477 |
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
| Operating income | | (16,409) | | 12,487 | | 10,907 |
| (loss) | | | | | | |
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
| Income (loss) from | | (71,165) | | (7,717) | | 3,434 |
| continuing operations | | | | | | |
| before income taxes | | | | | | |
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
| Net income (loss) | | JPY(84,986) | | JPY(6,761) | | JPY(17,992) |
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
| Net income (loss) per | | JPY(487.23) | | JPY(38.76) | | JPY(98.23) |
| share (yen) | | | | | | |
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
| Dividend per share | | JPY10.00 | | JPY10.00 | | JPY7.50 |
| (yen) | | | | | | |
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
| Shareholders' equity | | JPY1,566.60 | | JPY1,537.22 | | JPY1,206.71 |
| per | | | | | | |
| share (yen) | | | | | | |
+------------------------------+-+---------------------------+-+---------------------------+-+---------------------------+
Notes:1.Pioneer's consolidated financial statements have been prepared in
conformity with accounting principles generally accepted in the United States of
America.
2.Operating income (loss) is presented as operating revenue less cost of sales
and selling, general and administrative expenses in accordance with accounting
practices generally accepted in Japan.
(2)Number of issued shares and dilutive shares
+------------------------------+-+--------------+-+--------------+
| | | (As of March 31, 2009) |
+------------------------------+-+-------------------------------+
| Type | | Number of | | Ratio to |
| | | shares | | issued |
| | | | | shares |
+------------------------------+-+--------------+-+--------------+
| Number of issued shares | | 210,063,836 | | 100% |
+------------------------------+-+--------------+-+--------------+
| Number of dilutive shares | | 15,921,288 | | 7.57% |
+------------------------------+-+--------------+-+--------------+
Note:"Dilutive shares" relates to stock acquisition rights and bonds with stock
acquisition rights, the exercise price of which has no maximum or minimum.
(3)Recent stock prices
(i)For the past three years
+----------+-+-------------------+-+-------------------+-+-------------------+
| | | (In yen) |
+----------+-+---------------------------------------------------------------+
| | | Year ended March 31 |
+----------+-+---------------------------------------------------------------+
| | | 2007 | | 2008 | | 2009 |
+----------+-+-------------------+-+-------------------+-+-------------------+
| Opening | | JPY1,940 | | JPY1,555 | | JPY980 |
+----------+-+-------------------+-+-------------------+-+-------------------+
| High | | 2,295 | | 1,837 | | 1,102 |
+----------+-+-------------------+-+-------------------+-+-------------------+
| Low | | 1,480 | | 722 | | 82 |
+----------+-+-------------------+-+-------------------+-+-------------------+
| Closing | | JPY1,540 | | JPY990 | | JPY129 |
+----------+-+-------------------+-+-------------------+-+-------------------+
(ii)For the past six months
+----------+-+---------+-+----------+-+----------+-+---------+-+----------+-+---------+
| | | | | | | | | | | | | (In |
| | | | | | | | | | | | | yen) |
+----------+-+---------+-+----------+-+----------+-+---------+-+----------+-+---------+
| | | 2008 | |November | |December | | 2009 | |February | | March |
| | |October | | | | | |January | | | | |
+----------+-+---------+-+----------+-+----------+-+---------+-+----------+-+---------+
| Opening | | JPY700 | | JPY306 | | JPY211 | | JPY175 | | JPY165 | | JPY102 |
+----------+-+---------+-+----------+-+----------+-+---------+-+----------+-+---------+
| High | | 710 | | 369 | | 213 | | 224 | | 182 | | 156 |
+----------+-+---------+-+----------+-+----------+-+---------+-+----------+-+---------+
| Low | | 245 | | 200 | | 140 | | 154 | | 94 | | 82 |
+----------+-+---------+-+----------+-+----------+-+---------+-+----------+-+---------+
| Closing | | JPY284 | | JPY213 | | JPY163 | | JPY168 | | JPY103 | | JPY129 |
+----------+-+---------+-+----------+-+----------+-+---------+-+----------+-+---------+
(iii)Stock price on the day immediately preceding the date of the resolution
authorizing the issuance
+----------+-+----------------------------+
| | | (In yen) |
+----------+-+----------------------------+
| | | April 27, 2009 |
+----------+-+----------------------------+
| Opening | | JPY375 |
+----------+-+----------------------------+
| High | | 378 |
+----------+-+----------------------------+
| Low | | 354 |
+----------+-+----------------------------+
| Closing | | JPY364 |
+----------+-+----------------------------+
(4)Equity finance under this transaction
[Issuance of new shares through a third-party allotment]
+----------------------------+-+---------------------------------------------+
| Issue date | | To be determined |
+----------------------------+-+---------------------------------------------+
| Amount of funds to | | 2,481,250,000 yen (issue price: 170 yen) |
| be raised | | (estimated net proceeds) |
+----------------------------+-+---------------------------------------------+
| Number of issued | | 210,063,836 shares |
| shares at the time | | |
| of offering | | |
+----------------------------+-+---------------------------------------------+
| Number of shares to | | 14,700,000 shares |
| be issued through | | |
| such equity finance | | |
+----------------------------+-+---------------------------------------------+
| Aggregate number of | | 224,763,836 shares |
| issued shares after | | |
| offering | | |
+----------------------------+-+---------------------------------------------+
| Party to which | | Honda Motor Co., Ltd. |
| shares will be | | |
| allotted | | |
+----------------------------+-+---------------------------------------------+
(5)Equity finance executed in the past three years
[Issuance of new shares through a third-party allotment]
+----------------------------+-+---------------------------------------------+
| Issue date | | December 20, 2007 |
+----------------------------+-+---------------------------------------------+
| Amount of funds | | 41,400,000,000 yen (issue price: 1,385 yen) |
| raised | | (estimated net proceeds) |
+----------------------------+-+---------------------------------------------+
| Number of issued | | 180,063,836 shares |
| shares at the time | | |
| of offering | | |
+----------------------------+-+---------------------------------------------+
| Number of shares to | | 30,000,000 shares |
| be issued through | | |
| such equity finance | | |
+----------------------------+-+---------------------------------------------+
| Party to which | | Sharp Corporation |
| shares were allotted | | |
+----------------------------+-+---------------------------------------------+
| Use of the funds | | Working capital (increased demand for funds |
| planned at the time | | with respect to the alliance and joint |
| of offering | | developments with Sharp Corporation) |
+----------------------------+-+---------------------------------------------+
| Scheduled timing of | | At any time from December 2007 |
| expenditure | | |
+----------------------------+-+---------------------------------------------+
| Current status of | | Application of the funds has been completed |
| application | | |
+----------------------------+-+---------------------------------------------+
5.Major Shareholders and Their Shareholding Ratio
+-----------------------------+--------+-+-----------------------------+--------+
| Before the issuance | | After the issuance |
| (as of September 30, 2008) | | |
+--------------------------------------+-+--------------------------------------+
| Sharp Corporation | 14.28% | | Sharp Corporation | 13.35% |
+-----------------------------+--------+-+-----------------------------+--------+
| The Master Trust Bank | 6.97% | | Honda Motor Co., Ltd. | 6.54% |
| of Japan, Ltd. (Trust | | | | |
| Account) | | | | |
+-----------------------------+--------+-+-----------------------------+--------+
| Japan Trustee | 5.56% | | The Master Trust Bank | 6.52% |
| Services Bank, | | | of Japan, Ltd. (Trust | |
| Ltd. (Trust Account) | | | Account) | |
+-----------------------------+--------+-+-----------------------------+--------+
| The Bank of | 3.08% | | Japan Trustee | 5.20% |
| Tokyo-Mitsubishi UFJ, | | | Services Bank, | |
| Ltd. | | | Ltd. (Trust Account) | |
+-----------------------------+--------+-+-----------------------------+--------+
| Japan Trustee | 2.21% | | The Bank of | 2.89% |
| Services Bank, | | | Tokyo-Mitsubishi UFJ, | |
| Ltd. (Trust Account | | | Ltd. | |
| 4G) | | | | |
+-----------------------------+--------+-+-----------------------------+--------+
| Morgan Whitefriars | 1.95% | | Japan Trustee | 2.07% |
| Equity Derivatives | | | Services Bank, | |
| | | | Ltd. (Trust Account | |
| | | | 4G) | |
+-----------------------------+--------+-+-----------------------------+--------+
| Mizuho Bank, Ltd. | 1.90% | | Morgan Whitefriars | 1.82% |
| | | | Equity Derivatives | |
+-----------------------------+--------+-+-----------------------------+--------+
| Trust & Custody | 1.88% | | Mizuho Bank, Ltd. | 1.78% |
| Services Bank, Ltd. | | | | |
| as trustee for Mizuho | | | | |
| Bank, Ltd. Retirement | | | | |
| Trust Account | | | | |
| re-entrusted by | | | | |
| Mizuho Trust & | | | | |
| Banking Co., Ltd. | | | | |
+-----------------------------+--------+-+-----------------------------+--------+
| BNP Paribas | 1.51% | | Trust & Custody | 1.76% |
| Securities (Japan) | | | Services Bank, Ltd. | |
| Limited. | | | as trustee for Mizuho | |
| | | | Bank, Ltd. Retirement | |
| | | | Trust Account | |
| | | | re-entrusted by | |
| | | | Mizuho Trust & | |
| | | | Banking Co., Ltd. | |
+-----------------------------+--------+-+-----------------------------+--------+
| Pioneer Employee | 1.29% | | BNP Paribas | 1.42% |
| Share Ownership Plan | | | Securities (Japan) | |
| | | | Limited. | |
+-----------------------------+--------+-+-----------------------------+--------+
Notes:1.The above shareholding ratios after the issuance have been calculated by
adding the number of shares to be increased through the third-party allotment to
the number of issued shares as of September 30, 2008.
2.The above table is based on the register of shareholders as of September 30,
2008.
3.Pioneer held treasury stock at the ratio of 2.38% of its total issued shares
as of September 30, 2008, which are not included in the major shareholders set
forth above.
6.Estimated Impact on Business Results
Consolidated business forecasts through fiscal 2012, the year ending March 31,
2012, contained in a separate news release entitled "Pioneer Announces
Medium-Term Management Plan" announced on April 28, have been prepared by taking
into consideration the bolstering of ties with Honda through the issuance of new
shares as a part of the Car Electronics business strategies. Consolidated
business forecasts for fiscal 2010, the year ending March 31, 2010, which is
scheduled to be announced on May 13, 2009, will also be prepared by taking into
consideration such factor.
7.Rationale for Conditions of Issuance
(1)Basis of calculation of issue price
The issue price (the amount to be paid under the Company Law of Japan) will be
170 yen, the average of the closing prices of regular trading of shares of
common stock of Pioneer on the Tokyo Stock Exchange for the three-month period
from January 28, 2009 to April 27, 2009 (the date immediately preceding the date
of the resolution of the board of directors) (any amount less than one yen being
disregarded). This amount represents a 53.3% discount against 364 yen, the
closing price of the regular trading of shares of common stock of Pioneer on
April 27, 2009. In light of the recent volatility in the equity markets and the
latest large fluctuation of the share price of Pioneer, the board of directors
of Pioneer unanimously determined that a fair manner by which to determine the
issue price to use as the reference would be to use the average of market prices
of shares of Pioneer during a period in which fluctuation is alleviated rather
than the single day's market price of the shares on the date immediately
preceding the date of resolution of the board of directors, and that it would be
appropriate to take into consideration the market prices on February 12 this
year on which date Pioneer announced the revised business forecasts for fiscal
2009, the year ending Mach 31, 2009, which is the latest announcement regarding
business forecasts by Pioneer, and during a considerable period immediately
thereafter. Taking into consideration those matters described above, Pioneer has
determined the issue price to be 170 yen, the average of the prices in the last
three months, as described above. This issue price has also been unanimously
supported by the corporate auditors of Pioneer. The manner in which the issue
price was calculated is in compliance with the "Guidance Concerning Handling of
Capital Increase, Etc. Through a Third-party Allotment" established by the Japan
Securities Dealers Association.
(2)Rationale for judgment that the number of shares to be issued and the level
of dilution of shares are reasonable
Pioneer determined that the proposed size of the issuance of new shares is
necessary in order to bolster ties with Honda, one of its major clients in the
Car Electronics OEM business, as well as achieve the improvement of its
financial position, one of the main measures of business restructuring announced
by Pioneer on April 28. Pioneer believes that bolstering ties with Honda will
contribute to expanding the OEM business with an emphasis on car navigation
systems by harnessing proposal capabilities honed in the consumer-market
business and to enhancing the corporate value of Pioneer.
8.Reason for Selecting Honda and Other Related Matters.
(1)Outline of Honda
+------------+-----------------+----+-------------------------------+-+-------+-+-----------------------------------+-------+--------------------------+-------+
| | | | |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (i) | Trade name | | Honda Motor Co., Ltd. |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (ii) | Businesses | | Manufacture and sales of transportation vehicles |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (iii) | Date of | | September 24, 1948 |
| | incorporation | | |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (iv) | Location of | | 1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo, Japan |
| | headquarters | | |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (v) | Representative | | Takeo Fukui, President & CEO |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (vi) | Capital stock | | 86,067 million yen |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (vii) | Number of | | 1,834,828,430 shares |
| | issued shares | | |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (viii) | Net assets | | 4,256,337 million yen (consolidated) |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (ix) | Total assets | | 12,037,382 million yen (consolidated) |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (x) | Fiscal year end | | March 31 |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (xi) | Number of | | 186,421 (consolidated) |
| | employees | | |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (xii) | Major business | | Domestic and foreign manufacturers and distributors of |
| | partners | | transportation vehicles. |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (xiii) | Major share- | | Moxley & Co. | 5.65% |
| | holders and | | | |
| | their | | | |
| | shareholding | | | |
| | ratio | | | |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | Japan Trustee Services Bank, Ltd. (Trust Account 4G) | 4.42% |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | Japan Trustee Services Bank, Ltd. (Trust Account) | 4.33% |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | The Master Trust Bank of Japan, Ltd. (Trust Account) | 4.07% |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | Tokio Marine & Nichido Fire Insurance Co., Ltd. | 3.57% |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | JPMorgan Chase Bank 380055 | 3.50% |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | The Bank of Tokyo-Mitsubishi UFJ, Ltd. | 3.33% |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | Meiji Yasuda Life Insurance Company | 2.96% |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | Sompo Japan Insurance Inc. | 2.38% |
+ + +----+------------------------------------------------------------------------------------------------------------------+-------+
| | | | Mitsui Sumitomo Insurance Company, Limited | 1.91% |
+------------+-----------------+----+------------------------------------------------------------------------------------------------------------------+-------+
| (xiv) | Major | | The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust |
| | transaction | | and Banking Corporation, Saitama Resona Bank, Limited and |
| | banks | | Mizuho Corporate Bank, Ltd. |
+------------+-----------------+----+--------------------------------------------------------------------------------------------------------------------------+
| (xvi) | Relationship | | Capital | | Pioneer holds 400,000 shares of common stock of |
| | between Pioneer | | relationship | | Honda. |
| | and Honda | | | | |
+ + +----+-------------------------------+-+----------------------------------------------------------------------------------------+
| | | | Business | | Pioneer sells car electronics products to |
| | | | relationship | | Honda. |
+ + +----+-------------------------------+-+----------------------------------------------------------------------------------------+
| | | | Personnel | | Not applicable |
| | | | relationship | | |
+ + +----+-------------------------------+-+----------------------------------------------------------------------------------------+
| | | | Related | | Not applicable |
| | | | party | | |
| | | | relationship | | |
+------------+-----------------+----+-------------------------------+-+----------------------------------------------------------------------------------------+
| (xvi) | Consolidated business results for the past three years |
+------------+-------------------------------------------------------------------------------------------------------------------------------------------------+
| | | (In millions of yen except per share information) |
+------------------------------+----+--------------------------------------------------------------------------------------------------------------------------+
| | | Year ended March 31 |
+------------------------------+----+--------------------------------------------------------------------------------------------------------------------------+
| | | 2006 | | 2007 | | 2008 |
+------------------------------+----+-----------------------------------------+-+-----------------------------------+-------+----------------------------------+
| Net | | JPY9,907,996 | | JPY11,087,140 | | JPY12,002,834 |
| sales | | | | | | |
| and | | | | | | |
| other | | | | | | |
| operating | | | | | | |
| revenue | | | | | | |
+------------------------------+----+-----------------------------------------+-+-----------------------------------+-------+----------------------------------+
| Operating | | 868,905 | | 851,879 | | 953,109 |
| income | | | | | | |
+------------------------------+----+-----------------------------------------+-+-----------------------------------+-------+----------------------------------+
| Income | | 829,904 | | 792,868 | | 895,841 |
| before | | | | | | |
| income | | | | | | |
| taxes, | | | | | | |
| minority | | | | | | |
| interest | | | | | | |
| and | | | | | | |
| equity | | | | | | |
| in | | | | | | |
| income | | | | | | |
| of | | | | | | |
| affiliates | | | | | | |
+------------------------------+----+-----------------------------------------+-+-----------------------------------+-------+----------------------------------+
| Net | | JPY597,033 | | JPY592,322 | | JPY600,039 |
| income | | | | | | |
+------------------------------+----+-----------------------------------------+-+-----------------------------------+-------+----------------------------------+
| Net | | JPY324.33 | | JPY324.62 | | JPY330.54 |
| income | | | | | | |
| per | | | | | | |
| share | | | | | | |
| (yen) | | | | | | |
+------------------------------+----+-----------------------------------------+-+-----------------------------------+-------+----------------------------------+
| Dividend | | JPY100.00 | | JPY67.00 | | JPY86.00 |
| per | | | | | | |
| share | | | | | | |
| (yen) | | | | | | |
+------------------------------+----+-----------------------------------------+-+-----------------------------------+-------+----------------------------------+
| Net | | JPY2,259.26 | | JPY2,460.28 | | JPY2,504.36 |
| assets | | | | | | |
| per | | | | | | |
| share | | | | | | |
| (yen) | | | | | | |
+------------+-----------------+----+-------------------------------+-+-------+-+-----------------------------------+-------+--------------------------+-------+
Note: Capital stock, number of issued shares, net assets, total assets, number
of employees, and major shareholders and their shareholding ratio above are as
of December 31, 2008.
(2)Reason for selecting Honda
In the medium-term management plan of Pioneer, the aim is to expand its Car
Electronics business both in the areas of the consumer-market business and OEM
business by allocating its business resources to its Car Electronics business.
In accordance with this policy, Pioneer has come to the conclusion that Honda is
the most appropriate partner to which new shares should be allotted in light of
existing business relations, possibilities for development of future business,
corporate scale, technical capability and distribution ability.
(3)Policy of Honda for holding shares of Pioneer
Pioneer has confirmed that the party to which new shares will be allotted
intends to hold such new shares for the medium- and long-term.
In addition, Pioneer will request Honda a written confirmation agreeing and/or
acknowledging that, if Honda assigns all or a part of the new shares to be
allotted within two years of the closing date, (i) Honda will immediately report
to Pioneer, in writing, the name of the assignee, the number of shares assigned
and other matters, (ii) Pioneer will report such assignment to the Tokyo Stock
Exchange, and (iii) Honda will consent to the substance of such report being
available for public inspection.
[Attachment]
TERMS AND CONDITIONS OF ISSUANCE
(1)Number of shares to be issued: 14,700,000 shares of common stock
(2)Issue price: 170 yen per share (the amount to be paid under the Company Law
of Japan)
(3)Aggregate issue price: 2,499,000,000 yen
(4)Amount to be accounted for as stated capital: 1,249,500,000 yen (85 yen per
share)
(5)Method of offering or allotment: Third-party allotment
(6)Date of application for offering: To be determined
(7)Closing date: To be determined
(8)Party to which shares will be allotted and number of shares to be
allotted: Honda Motor Co., Ltd.; 14,700,000 shares of common stock
(9)Each of the items above shall be subject to the completion of the procedures
required under the Financial Instruments and Exchange Law of Japan.
The closing date will be determined at the meeting of the board of the directors
to be held later. It is also possible that the terms and conditions of issuance
may be modified as a result of discussions on the capital alliance between Honda
and Pioneer.
Pioneer Corporation is a leading global manufacturer of consumer- and
business-use electronics products such as audio, video and car electronics. Its
shares are listed on the Tokyo Stock Exchange.
# # # # # #
This information is provided by RNS
The company news service from the London Stock Exchange
END
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