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Empresas y finanzas

SBI Holdings Forms Buy-Out Investment Alliance with Goldman Sachs


    SBI Holdings, Inc. (TOKYO:8473) today announced that it signed an
    agreement with Goldman Sachs to jointly invest in middle-sized growing
    companies in Japan. Under the agreement, SBI will sell 40% of its
    buy-out and enterprise revitalization funds unit, SBI CAPITAL Co.
    Ltd., to Goldman Sachs.

    SBI Capital will leverage the combined strengths of SBI Holdings,
    one of Japan's most successful venture capital groups with its broad
    client base and a wealth of investment experience, and Goldman Sachs,
    a leading investment bank with a strong capital base and global
    investing track record.

    With an average internal rate of return (IRR) surpassing 20% for
    the 2006 financial year, SBI CAPITAL brings a track record of actively
    promoting investment activities, primarily in the buy-out area. SBI
    CAPITAL has turned-around numerous Japanese companies to a level of
    healthy fundamentals and sustainable growth. Recent investments
    include Foodx Globe Co. Ltd. (the parent of Tully's Coffee Japan Co.
    Ltd.) and CEM Corporation Co. Ltd., a popular mortgage lender.
    Additionally, SBI CAPITAL was the first in Japan to accomplish a
    re-listing of a company that had been de-listed, Kawaden Corporation
    (JASDAQ:6648), a now thriving manufacturer of industrial electronics.

    SBI E*TRADE SECURITIES, Japan's largest online brokerage firm, and
    a major underwriter of IPO's, provides a direct link for SBI CAPITAL's
    portfolio to find success in the public markets. The JV hopes to
    replicate this value-creation formula.

    SBI CAPITAL will continue to manage its existing buy-out and
    restructuring fund, as well as to launch new funds specifically
    targeting high-growth potential targets in one of Japan's most diverse
    yet underserved markets. The first of the new such funds planned will
    deploy 10 billion yen (approximately $82 million) within three years
    and will not restrict investment activity to Japan or to any specific
    industry or sector.

    Over time SBI CAPITAL seeks to improve the overall health of the
    middle market segment by raising the bar for operational excellence,
    financial stability and sustainability.

    1. Performance Results, SBIC Funds, as of March 2007

    -0-
    *T
    Formation Initial Distribution Net Profit
    Date Capital to Return
    Investors
    --------------- ------------ ------------ ------------ --------------
    LBO Fund No. 1 May 2001 5.0 10.93 18.3%
    --------------- ------------ ------------ ------------ --------------
    Business February
    Revitalization 2002
    Fund No. 1 10.4 19.96 25.7%
    --------------- ------------ ------------ ------------ --------------
    VR Business
    Revitalization October 2002
    Fund 1.0 01.93 27.7%
    --------------- ------------ ------------ ------------ --------------
    Total 16.4 32.82 22.2%
    --------------- ------------ ------------ ------------ --------------
    (units: Billion
    yen)
    --------------- ------------ ------------ ------------ --------------
    *T

    2. Details of the Business and Capital Partnership

    (a) Regarding the Stock Transfer of SBI CAPITAL Co., Ltd.

    -- Transferor: SBI Holdings, Inc.

    -- Transferee: Jupiter Investment Y.K. (a group company of
    Goldman Sachs)

    -- Transferred Stock: SBI CAPITAL Co. Ltd. Common Stock

    -- Number of Transferred Stock: 18,756 Shares (40% of total
    outstanding stock)

    -- Transfer Date: Wednesday, May 23 , 2007

    (b) Regarding the Structure of SBI CAPITAL Co., Ltd., post stock
    transfer

    -- Trade Name: SBI CAPITAL Co., Ltd.

    -- Address: Izumi Garden Tower, 1-6-1 Roppongi, Minato-ku, Tokyo

    -- Date Established: April 13, 2001

    -- Type of Business Operations: Buy-out and enterprise
    revitalization funds management

    -- Capital: 109 million yen, additional paid-in capital of 27
    million yen.

    -- Investment Ratio: 60% by SBI Holdings, Inc., 40% by Jupiter
    Investment Y.K. (a group company of Goldman Sachs)

    -- Planned Directors: Representative Director and CEO, Yoshitaka
    Kitao

    Representative Director and COO, Kentaro Azuma

    Director and CIO, Kazuhiro Iwamoto

    (An additional two Directors to be appointed by Goldman Sachs)

    3. Impact on Business Performance Results of SBI Holdings, Inc.

    As a result of this transfer of SBIC stock, the Company is
    expected to recognize an extraordinary pre-tax profit of 4.9 billion
    yen on a consolidated-basis and 6.3 billion yen on a non-consolidated
    basis for this financial year. The effects on the Company's business
    operations have yet to be determined.

    About SBI Holdings, Inc.

    SBI Holdings (TOKYO: 8473) is a Tokyo Stock Exchange financial
    services group. Today, SBIH's operations span three main business
    areas: (1) Asset Management including Venture Capital; (2) Brokerage
    and Investment Banking; and (3) Internet-Enabled Financial Services.
    In addition to managing a family of venture capital funds, many of the
    firm's 70 companies have taken leadership positions in various
    consumer-oriented online financial services such as equities and
    commodities brokering, home equity loans, and insurance comparison.
    Internationally, the firm has recently formed international joint
    partnerships with groups controlled by Singapore's Temasek Holdings
    and State Bank of India. SBI also plans to launch Japan's first
    full-service Internet bank sometime this year, in concert with
    Sumitomo Trust & Banking, as well as a new life insurance business
    with AXA Japan and a non-life insurance company with Aioi Insurance
    Co. SBI's corporate website: www.sbigroup.co.jp