April 28, 1999
| | |
| ||
| April 28, 1999 | atimes.com | |
| ||
| Japan Economy Holding company system gains momentum in Japan TOKYO - Daiwa Securities Group Inc. (TSE:8601) became Japan's first listed holding company Monday and others, including Nippon Telegraph and Telephone Corp. (9432) and Toshiba Corp. (6502), are planning to follow suit. Daiwa Securities Co. became a holding company for its former retail and wholesale divisions, company officials said. The new firm, Daiwa Securities Group Inc., will receive dividends from its subsidiaries as its source of earnings. Daiwa is still offering its shares publicly, however - the first such case in Japan. Daiwa's wholesale division was spun off on April 5 to form Daiwa Securities SB Capital Markets Co. The securities firm is a joint venture with Sumitomo Bank (TSE:8318), and has a staff of some 1,600 people. The retail division was reborn as new Daiwa Securities Co. on Monday, with about 6,200 employees. Daiwa Securities Group, with a work force of about 400, will be engaged in financial affairs and policy-making for the whole group. The holding company also covers eight other companies, including ex-Daiwa affiliates. Softbank Corp. (9984) became a holding company on April 1 but the firm continues to run its own business. In contrast, Daiwa and NTT, which is slated to become a holding company in July, will only hold subsidiaries' shares and formulate group-wide business strategies; actual operations will be carried out by affiliated firms. Such designs were made possible by a December 1997 amendment to the Anti-monopoly Law. The holding company formed by NTT will conduct research and development, the telephone business will be left to its subsidiaries. Toshiba will also form a holding company for its group firms. Sony Corp. (TSE:6758), will turn three of its listed companies into wholly-owned subsidiaries in January 2000, including Sony Music Entertainment (Japan) Inc. (TSE:7930). The firm will likely adopt a system similar to Softbank's: The parent will run the cutting-edge electronic business, the three companies and other subsidiaries will take over all other operations. (Asia Pulse/Nikkei) | |||||||||
 |
|
Front | China | Southeast Asia | Japan | Koreas | India/Pakistan | Central Asia/Russia | Oceania Business Briefs | Global Economy | Asian Crisis | Media/IT | Editorials | Letters | Search/Archive |
back to the top ©1999 Asia Times Online Co., Ltd. |
