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Livedoor Aims to Take Majority Stake in Mail-Order Firm Cecile

Posted on: Friday, 21 October 2005, 12:00 CDT

By Kyodo News International, Tokyo

Oct. 21--TOKYO -- Internet services firm Livedoor Co. said Friday it is seeking to take control of Cecile Co. as a Livedoor subsidiary will obtain a majority stake in the mail-order company for more than 20 billion yen.

The action is part of the two companies forming capital and business alliances, which are expected to allow Livedoor to strengthen its online shopping business by gaining access to Cecile's customer base of 15 million people, mainly women.

Livedoor Marketing Co. will purchase 25.7 percent of Cecile, or 99,900 of Cecile's outstanding shares, for 10.38 billion yen from a firm that manages properties of Cecile's founding family.

The Livedoor unit will then try to buy another 24.4 percent, or 9,833,800 shares, at 1,000 yen per share through a public tender offer from next Monday through Nov. 15.

Cecile voiced support for the offer. The company's founding family holds about 60 percent of its outstanding shares.

Cecile said it will issue Livedoor Marketing equity warrants for another 8,070,000 shares, or 20 percent, on condition that the tender offer is successfully concluded and its shareholders approve.

Established in 1972 and based in Takamatsu, Kagawa Prefecture, Cecile achieved rapid growth with its female underwear business, expanding to the clothing sector.

Recently it has suffered from fierce competition.

The company, with about 871 employees, posted a group net profit of 31 million yen for the six months through June on sales of 31.3 billion yen, down 32.3 percent from the year before.

On the First Section of the Tokyo Stock Exchange, Cecile ended Friday's trading at 1,160 yen, up 83 yen from the previous day.

On the TSE's Mothers for start-ups, Livedoor Marketing closed 150 yen higher at 4,730 yen and Livedoor rose 6 yen to end at 419 yen.

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Copyright (c) 2005, Kyodo News International, Tokyo

Distributed by Knight Ridder/Tribune Business News.

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4753, 9937,

Source: Kyodo News International, Tokyo

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