Yamada Denki Co Ltd to Form Business and Capital Alliance with Best Denki Co., Ltd.; to Make Best Denki Subsidiary

Yamada Denki Co Ltd announced that it has decided to form a business and capital alliance with Best Denki Co., Ltd. Through the business alliance, the two companies will collaborate in the product procurement, product development, area strategy as well as the sharing of logistics and human resources, among others. Through the capital alliance, Best Denki will issue 80,265,500 new shares at the price of JPY 151 per share to Yamada Denki through a private placement. As a result, Yamada Denki will become parent company of Best Denki with 51.16% voting rights, up from 7.49%, While Bic Camera Inc. will become the second major shareholder of Best Denki with 7.98% voting rights, down from 15.12%.