Seiyu shareholders approve additional Wal-Mart and Mizuho investment
Ed Kolodzieski Appointed Seiyu CEO
TOKYO, December 15, 2005 – The Seiyu Ltd. (TSE: 8268), a leading Japanese retail chain, today announced shareholder approval of conditions for additional investment by Wal-Mart Stores, Inc. and Mizuho Corporate Bank of 67.5 billion yen (US$565 million) and 47.5 billion yen ($US400 million) respectively. With payment of Wal-Mart’s additional investment planned for December 21, 2005, ownership will increase to 54%, making Seiyu a subsidiary of Wal-Mart.\
Ed Kolodzieski’s appointment as Seiyu Representative Executive Officer and Chief Executive
Officer became effective as of today.
“After a long association with Seiyu, I am excited to be here in the market working directly with our associates, suppliers and customers. Seiyu has done an outstanding job of integrating new systems and taking on new ideas and I look forward to leveraging that capability to increase our efficiency and overall performance. Our strategy is to deliver great quality merchandise to customers at the best possible prices and I believe Seiyu is on the road to achieving this in the Japanese market.” said Mr Kolodzieski.
Mr Kolodzieski left his US-based position as COO of Wal-Mart International to join the Seiyu
management team in Japan, working closely alongside Seiyu Chairman Noriyuki Watanabe.
“Seiyu and Wal-Mart have been building the foundation for a new Seiyu since the outset of the partnership in 2002 and we have seen encouraging trends like positive comparative sales in both October and November of this year. This additional investment by Wal-Mart and the focus of Wal-Mart management resources will strengthen our financial base and position us for growth,” said Noriyuki Watanabe, Chairman of Seiyu.
Mike Duke, Wal-Mart Vice-Chairman, joined today’s Extraordinary General Meeting and said,
“Seiyu is a valuable addition to Wal-Mart and provides us with a significant presence in the world’s second largest market. I am confident that with the leadership of Chairman Watanabe and Ed Kolodzieski, Seiyu has a strong future.”
Several new board members were also approved, including Seiyu’s Kazuo Nakamura, Executive Vice President; Wal-Mart Vice-Chairman, Mike Duke; Wal-Mart International CFO Wan Ling Martello; and Wal-Mart Executive Vice President and CIO Linda Dillman. This will be the first time two women have taken positions on the Seiyu Board and reflects a strong focus on Seiyu’s core customer base, female shoppers. Wal-Mart now holds 6 out of 11 Board seats.
For further inquiries, please contact:
The Seiyu Ltd.
05 3598 7760
03 3598 7760
080 3171 9427
Beth Keck/Bill Wertz
Notes to Editors –
About The Seiyu Ltd.
The Seiyu Ltd. is a leading Japanese retailer, with major operations in supermarkets and general merchandising stores. Currently the Seiyu Group operates 405 stores located throughout Japan. Wal-Mart is Seiyu’s largest shareholder and is working closely with Seiyu to renew its focus on the customer and its core retail operations, as well as on its transition to a low-cost, low-price operating structure.
About Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAMS CLUBS in all 50 U.S. states. Internationally, the company has interests in retail operations in Japan, Puerto Rico, Canada, China, Mexico, Brazil, Germany, United Kingdom, Argentina, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and South Korea. The companys securities are listed on the New York and Pacific stock exchanges under the symbol WMT. Last year, Wal-Mart Stores, Inc., contributed more than $170 million to support communities and local nonprofit organizations.
More information about Wal-Mart can be located on-line at www.walmartfacts.com.