Notice Concerning the Renunciation of Claims Held Against Subsidiary and Recognition of Extraordinary Losses (PDF:138KB)
September 23, 2016 at 12:53 am EDT
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TRANSLATION FOR REFERENCE PURPOSES ONLY
This notice has been translated from the original Japanese text of the timely disclosure statement date 2016 and is for reference purposes only. In the event of any discrepancy between the original Ja translation, the Japanese text shall prevail.
September 20, 2016
To whom it may concern
Listed Company Name:
Unicharm Corporation
Company Representative:
Takahisa Takahara,
President and Chief Executive Officer
(Code Number: 8113; First Section, Tokyo Stock Exchange)
Contact Person:
Shigeru Asada,
Executive Officer, General Manager of Accounting Control and Finance Division
Telephone Number:
+81-3-3451-5111
Notice Concerning the Renunciation of Claims Held Against Subsidiary and Recognition of Extraordinary Losses
Unicharm Corporation (the "Company") hereby announces that it has resolved at its Board of Directors meeting held on September 20, 2016 to renounce part of claims held against consolidated subsidiary Unicharm Middle East & North Africa Hygienic Industries Company S.A.E. ("UCMENA") and to recognize extraordinary losses associated with the execution of the aforementioned renunciation of claims in its non-consolidated financial statements of the fiscal year ending December 31, 2016. The details are presented below.
Reason for renunciation of claims
Aiming to eliminate the excess of liabilities over assets of UCMENA, which suffered increased liabilities as a result of the rapid and sharp devaluation of the Egyptian Pound, and bring greater stability to the subsidiary's financial position, the Company will renounce its claims against the subsidiary.
Overview of UCMENA
Headquarters: 10th of Ramadan City, Industrial Zone A-6, Area 124-125, Egypt
Representative: Managing Director Mahdy S. Katbé
Business activities: Manufacture and sale of personal care related products
Capital: EGP 350 million
Shareholder composition: Unicharm Corporation 95%, Mahdy S. Katbé 5%
TRANSLATION FOR REFERENCE PURPOSES ONLY
This notice has been translated from the original Japanese text of the timely disclosure statement dated September 20, 2016 and is for reference purposes only. In the event of any discrepancy between the original Japanese and this translation, the Japanese text shall prevail.
Net assets: Negative EGP 151 million (As of June 30, 2016)
Total assets: EGP 1,260 million (As of June 30, 2016)
Details of renunciation of claims
Type of claims: Loans receivable
Amount of claims: Approx. USD 78.9 million (Approx. JPY 8,140 million)
Date of effect: September 20, 2016
Effect on the Company's financial results
The Company intends to recognize approximately JPY 8,140 million of the above-mentioned renunciation of claims as extraordinary loss in the Company's non-consolidated financial statements of the fiscal year ending December 31, 2016. There will not be an effect on the consolidated financial statements due to the offsetting nature of the accounting.
-End-
Unicharm Corporation published this content on 20 September 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 September 2016 04:53:05 UTC.
Original documenthttp://www.unicharm.co.jp/english/ir/news/2016/__icsFiles/afieldfile/2016/09/23/Release_E_160920.pdf
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Unicharm Corp is a Japan-based company mainly engaged in the manufacture and sale of baby care-related products, feminine care-related products, healthcare-related products, clean & fresh-related products, pet care-related products. The Company operates in three business segments. The Personal Care segment is engaged in the provision of baby care-related products including paper diapers, feminine care-related products including sanitary items, as well as healthcare-related products, including incontinence articles for adults and powder puffs. The Pet Care segment is engaged in the provision of pet food products and pet toiletry products. The Others segment offers industrial materials-related products and others. Its brands include moony, Silcot, Wave, Sofy and Lifree.