Shareholders of struggling Japanese retailer Seiyu today (15 December 2005) approved plans to issue new shares that will increase Wal-Mart’s stake in company voting rights from 42.28% to 53.56% as of 21 December 2005.
In return, Seiyu will receive an injection of JPY115b (US$992m) from Wal-Mart and Mizuho Corporate Bank, Dow Jones Newswire reported.
The shareholders meeting also approved the appointment of new chief executive officer Edward Kolodzieski, formerly chief operating officer of Wal-Mart International and Seiyu board member since 2004.
Kolodzieski said Wal-Mart’s increased investment in Seiyu demonstrated the US retail giant’s continued confidence in Seiyu’s “long-term bright possibilities”.
Seiyu is anticipating a group net loss of Y13.5b for the fiscal year through to 31 December 2005. Kolodzieski declined to offer any indication of new earnings or financial guidance, saying instead that he wants to first consult his associates, suppliers and consumers, Dow Jones said.
