Seibu HD Final Adjustment to Accept 80 Billion Yen Investment Two Subsidiaries Issue Priority Shares

Seibu HD Final Adjustment to Accept 80 Billion Yen Investment Two Subsidiaries Issue Priority Shares October 15 12:54

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In order to strengthen its financial base, Seibu Holdings Co., Ltd., which has deteriorated due to the effects of the new Coronavirus, has made final adjustments to accept a total investment of 80 billion yen from its main trading banks in the form of the issuance of preferred shares by its subsidiaries Seibu Railway and Prince Hotel.

Seibu Holdings is expected to post a final loss of 63 billion yen this fiscal year due to a drop in rail and hotel customers due to the spread of the new Coronavirus.

The final deficit is the first in 12 years, and the deficit is said to be the largest ever.

For this reason, Seibu Holdings, through its subsidiaries, is in the process of accepting a total investment of 80 billion yen from its main trading banks Mizuho Bank and the Investment Bank of Japan.

Specifically, Seibu Railway and Prince Hotel will issue priority shares, which can receive high dividends instead of voting rights, and the two banks will take on 40 billion yen each.

Seibu Holdings is aiming to strengthen its financial base by increasing its capital by issuing priority shares, and to overcome severe conditions that are concerned about the prolonged effects of the new coronavirus.