Honda Plans Ownership of Suzuka Track
Japan’s Honda Motor Co., Ltd. intends to make Suzuka Circuitland Co., Ltd. a wholly owned subsidiary, and to merge it with its Twin Ring Motegi Co., Ltd.
Honda says it plans to acquire ownership of Suzuka by obtaining all of Suzuka’s shares by share exchange. Honda currently owns 85.4% of Suzuka. One share of Honda Motor Co. Ltd. equals 0.024 a share of Suzuka, thus 0.024 shares of Honda will be allocated for each Suzuka share. No Honda share will be allocated to 34,163,410 shares of Suzuki already held by Honda.
The official date of the share exchange will be March 10, 2006, after Suzuka has obtained a resolution approving the share exchange agreement from its extraordinary general shareholders’ meeting to be held on February 7, 2006.
Honda’s decision was made at a board of directors meeting held December 19. Honda officials say the company decided to make Suzuka a wholly owned subsidiary to operate the business with greater flexibility and efficiency, thereby better engaging Honda in the further development of motorsports, mobility, and safe driving campaigns.
The purchase also allows Honda to merge Suzuka with Twin Ring Motegi Co., Ltd. a move expected to take place in 2006. Twin Ring Motegi operates an oval course – the only one of its kind in Asia. Honda says merging the two will increase operating efficiencies.
There will be no change in either party’s corporate name, business, address, or representation following the Honda and Suzuka share exchange. Also, since Suzuka already is a Honda consolidated subsidiary, Honda expects no significant change in its consolidated financial results as a result of the share exchange.
