Beleaguered Japanese milk processor Snow Brand Milk Products yesterday [Thursday] outlined the small print of a milk joint venture it has agreed with a number of partners.
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The new company, to be called Nippon Milk Community Co., will be set up as of 1 January with capital of ¥15bn (US$125.1m). The new entity forecasts first year sales of ¥245bn, and will employ 2,110 staff, reports Dow Jones
A 40% stake in the new entity will be held by Zen-noh (the National Federation of Agricultural Cooperative Associations), while Snow Brand Milk will take 30%. Another dairy farmer cooperative, the National Federation of Dairy Cooperative Associations (Zenrakuren) will hold a 20% stake, with the remaining 10% to be owned by Norinchukin Bank, a major creditor of Snow Brand Milk.
Snow Brand Milk’s total assets will decrease by about ¥62.6bn. The company’s sales will also decrease by about ¥33bn on a group basis and about ¥30bn on a parent basis for the current fiscal year ending March 2003.
However, the company has already factored that into its earnings forecasts announced 23 May, it said. As part of its efforts to secure restructuring funds, the company also announced it sold a 3% stake in its food wholesale affiliate Yukijirushi Access Inc. to Nihon Shurui Hanbai Co, a Japanese liquor, beverage and food product marketer, Dow Jones went on to report.
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