Sumitomo Metal Industries increases capital
Japan's fourth largest steelmaker Sumitomo Metal Industries (SMI) announced capital increase to take place at the end of January 2003, through a private placement of its shares involving 13 companies including Sumitomo Corp. and other companies in the group, Nippon Steel Corp. and Kobe Steel Ltd. The capital will be increased by Yen 47.1 billion (approximately $ 391 million). At the same time, Kobe Steel announced intention of a capital increase of Yen 6 billion to take place at the end of January with Nippon Steel and SMI as well. Meanwhile SMI and Kobe Steel are in the stock market purchasing Nippon Steel shares and are to complete these transactions by the end of March 2003, with SMI buying up to Yen 5 billion and Kobe Steel up to Yen 3 billion. Upon completion of this transaction, the tripartite capital linkage will be completed among the aforementioned companies.