News Release


[Sumitomo Mitsui Financial Group, Inc.]Notice regarding Change of Status of a Subsidiary(1/1)

 

The original texts of this press release are prepared in the Japanese language, and this translation is only provisional.

 

 

Sumitomo Mitsui Financial Group, Inc.

 

 

Notice regarding Change of Status of a Subsidiary

 

 

TOKYO, July 2, 2007 --- Sumitomo Mitsui Financial Group, Inc.(SMFG, President: TeisukeKitayama) and Sumitomo Mitsui Banking Corporation (SMBC, President: Masayuki Oku) hereby announce that Central Finance Co., Ltd.(CF, President & Representative Director: Tatsuo Tsuchikawa), which is an equity method affiliated company of both SMFG and SMBC, has acquired common shares of QUOQ Inc. (QUOQ, President: Shinpei Nihei) worth JPY 7,500,000,000 through a third-party allocation. As a result of this acquisition, QUOQ, which was formerly an equity method affiliated company of both SMFG and SMBC, become a consolidated subsidiary of both SMFG and SMBC.

 

1.Reasons for Change of Status

The change of status is due to CFfs acquisition of common shares of QUOQ through a third-party allocation based on the capital alliance between CF and QUOQ, as we announced by the press release titled gCentral Finance, Sumitomo Mitsui Financial Group and Mitsui & Co., Ltd. to Form Strategic Alliance in Consumer Finance Businessh on April 27, 2007.

 

2. Method of Change of Status

By issuance of common shares worth JPY 7,500,000,000 through a third-party allocation to CF, QUOQ become an equity method affiliated company of CF who will have 20% share of its total voting rights. Therefore, QUOQ become a consolidated subsidiary of both SMFG and SMBC.

 

1)    Issuance of common shares by QUOQ

i)     Number of shares to be issued: 480,000 shares

ii)    Aggregate amount of issue price: JPY 7,500,000,000

iii)   Company and the number of shares to be allocated: CF 480,000 shares

iv)   Payment date: July 2, 2007

 

3. Outline of QUOQ Inc.

 

Corporate Name

QUOQ Inc.

Location

Sumitomo Fudosan Mita Twin Buildings West Hall, 3-5-27 Mita, Minato-ku, Tokyo

Representative

Shinpei Nihei, President

Establishment date

April 5, 1978

Capital

4,750 million yen (as of July 2, 2007)

Main shareholders
(as of July 2, 2007)

Name

Address

No. of Shares

AS% of total outstanding shares

Central Finance Co., Ltd.

3-20-27 Nishiki, Naka-ku, Nagoya-shi, Aichi-ken

480,000

20.0“

Ginsen Co., Ltd.

4-6-12 Kouraibashi, Chuo-ku, Osaka-shi, Osaka-fu

410,000

17.0“

Sumitomo Mitsui Banking Corporation

1-2 Yurakucho 1-chome, Chiyoda-ku, Tokyo

264,000

11.0“

Main businesses

Consumer installment credit, consumer loan, guarantee and money collection agency service

Relationship
with SMFG

Capital

56.5% on a consolidated basis(as of July 2, 2007)

Personnel

None

Business

None

Employees

1,472 (as of March 31, 2007)

Earnings & Financial Situation

FY2005
(ended March 2006)

FY2006
(ended March 2007)

 

Operating income

67,319 million yen

62,109 million yen

Operating profit

2,456 million yen

1,069 million yen

Net income/loss

2,480 million yen

(21,562 million yen)

Total assets

934,062 million yen

879,066 million yen

Stockholdersf equity

48,779 million yen

25,070 million yen

 

4. Date of Effectiveness

    July 2, 2007

 

5. Earnings Forecasts

There is no revision to SMFGfs earnings forecasts for the fiscal year ending March 31, 2008.




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