23/1/09: Index Holdings Sells its Stake in Nikkatsu

Announcing its plan to sell its 71% stake in Nikkatsu, the mobile communications company Index Holdings revealed it was negotiating with four or five companies after selling 34% of its stake, worth 2.4 billion yen (£19.5 million) to Nippon Television Network.  The corporation’s aim was to cut its interest-bearing debt.

Nippon Television Network’s decision to buy the studio was prompted by falling revenue in the company’s core broadcasting business, a fact which made film production appear a lucrative form of income.

 In a media release, Nippon Television Network Corporation gave the following reason for its acquisition of shares in Nikkatsu:

 NIKKATSU Corporation (hereinafter referred to as NIKKATSU) is involved in the full value chain of the movie business which includes planning, production, acquisition, distribution, promotion, box-office and packaging, as well as expanding into the satellite business.

NTV has had business dealings with NIKKATSU in the audio-visual production field, and in recent years, NIKKATSU was in charge of the production of the movie series DEATH NOTE, for which NTV was the head organizer and highly appraised the production ability of NIKKATSU. Moreover, both NIKKATSU and NTV were cooperative organizers for the planned March release of movie YATTERMAN.

As our movie business becomes focused and well-positioned, it is necessary to fortify our future cooperation with NIKKATSU. In terms of the audio-visual content field, a high-quality content production synergy effect can be expected. For these reasons, NTV has, as a result of discussions, agreed to acquire 2,403,630 shares (34% ownership) of NIKKATSU from Index Holdings. [ADD]

Further Reading:

2009

Japan: 2009