Seibu Holdings

Seibu Holdings Inc.
Kabushiki kaisha
Traded as TYO: 9024
Genre Holding Company
Predecessor Kokudo Corp.
Founded February 3, 2006[1]
Headquarters 1-16-15 Minami-Ikebukuro, Toshima-ku, Tokyo, Japan
Key people
 Takashi Gotō
Increase ¥16.3 billion (FY 2013)[2]
Number of employees
 317 (As of March 2014)
Subsidiaries Seibu Railway, Prince Hotels
Website http://www.seibuholdings.co.jp/

Seibu Holdings, Inc. (株式会社西武ホールディングス, Kabushiki-gaisha Seibu Hōrudingusu) is a Japanese holding company which primarily owns Seibu Railway, Prince Hotels, Seibu Bus and its subsidiaries, which are collectively known as the Seibu Group. In total, fifty-three companies across the world are affiliated with the Seibu Group. The company was formed in 2006 to restructure the group after it had come to light in 2004 that the predecessor to Seibu Holdings, Kokudo, had falsified the ownership of its shares in Seibu Railway for over forty years.

As of January 2015, Seibu Holdings' share prices exceed ¥2900 and the company has the highest market capitalization of any Japanese company which owns a private rail network.

History

In 2004, the Seibu Group collapsed due to the revelation that the head of Kokudo (the predecessor of Seibu Holdings), Yoshiaki Tsutsumi, had falsified financial statements for over forty years. The scandal, which involved falsifying the ownership of Kokudo's share holdings in Seibu Railway, was compounded by the increased competition faced by Prince Hotels in the hotel and leisure market as well as an additional pay-off scandal involving a corporate racketeer. Seibu Railway was consequently delisted from the Tokyo Stock Exchange in December 2004 after shares fell to ¥400 from a peak of ¥8000.[3][4] As a response to this, Seibu Holdings was founded on February 3, 2006 with the aim of restructuring the group following an investment of ¥100 billion from the American private equity firm Cerberus Capital Management.[5] Tsutsumi, having pleaded guilty to the fraud charges in 2005, retained a 5% stake in Seibu Holdings having previously owned a 36% stake in Kokudo.[6][7]

The company has been directed by Takashi Gotō since its creation in 2006. He is also a company board member for Prince Hotels (since 2006) and Seibu Railway (since 2010).[8]

Despite paying out ¥5.2 billion in compensation as a result of lawsuits concerning the scandals of 2004, the company made a net profit of ¥16.3 billion in fiscal 2013, an increase of 5% when compared to the previous year.[2][5] In April 2014, Seibu Holdings was listed on the First Section of the Tokyo Stock Exchange where shares had originally been evaluated at ¥2300.[9] After Cerberus abandoned plans to sell a 15.5% stake of the business, however, shares began at the lower offering price of ¥1600 when they were relisted in April 23, 2014. The company ended the day at ¥1770 per share. In total, 27.8 million shares (about 8% of Seibu Holding's outstanding stock) were relisted.[5] It was later revealed that Cerberus had an agreement with their managing underwriter prohibiting them from selling their share in Seibu Holdings until October 2014.[10] The company exceeded its original ¥2300 per share evaluation in June 2014, with its share prices rising to ¥2945 on January 21, 2015.[11][12]

On January 19, 2015, Seibu Holdings' market capitalization of ¥975 billion overtook that of the Tokyu Corporation. Consequently, Seibu Holdings attained the highest market capitalization of any Japanese company which owns a private rail network.[13]

Structure

Having acquired an additional 3% stake in 2013, the largest shareholder, Cerberus, owns a 35.5%[10] stake in the business. Tsutsumi, the disgraced head of Kokudo, is the majority shareholder of NW Corp., which in turn is the second largest shareholder in Seibu Holdings. When combined, the two largest shareholders own a majority stake in Seibu Holdings.[5] Seibu Holdings president, Takashi Gotō, has stated his intent to avoid further third-party involvement in Seibu Holdings once Cerberus sells its stake, which can happen no earlier than October 2014. In order to reduce the likelihood of future third-party involvement, Gotō has appealed to those who live in the vicinity of Seibu Railway Lines to purchase shares in Seibu Holdings. There has, however, been no discussion between Seibu Holdings and Cerberus as to whom Cerberus will sell its stake in the business.[10]

Businesses

Seibu Railway (rolling stock pictured) is entirely owned by Seibu Holdings.
The Shin Yokohama Prince Hotel (pictured in 2008) is one of fifty hotels owned by Prince Hotels, a subsidiary of Seibu Holdings.

Seibu Holdings is a holding company which has ownership over fifty-three companies. The companies that are affiliated with Seibu Holdings are collectively known as the Seibu Group. As of March 2014, it directly employs 371 people.[1]

Seibu Holdings entirely owns Seibu Railway, a major passenger railway company founded in 1912. The company, which employs over 3,700, owns 176.6 kilometers of track and ninety-two stations in western Tokyo and Saitama. Statistics released by the company for fiscal 2013 state that its railway network serves 1.7 million people daily resulting in an annual revenue of ¥140.7 billion.[14]

The hotel chain Prince Hotels is also owned in its entirety by Seibu Holdings. Formed in 1956, the chain caters largely for the Japanese tourism market with fifty hotels within the country but also has a limited number of overseas resorts in Hawaii, Taiwan and Malaysia.[15] Statistics released by the company state that, at the end of the 2013 fiscal year, there were 6,737 employees and that its capital stock was ¥3.6 billion.[16] Seibu Holdings has announced plans for Prince Hotels offices to be established in Taiwan by October 2014 in order to cater for Taiwanese tourists, with whom the chain has proved most popular in terms of international tourist numbers.[17]

A diverse range of enterprises including: pet care, transportation and real estate are affiliated with Seibu Holdings. Some of Seibu Holdings' subsidiaries have subsidiaries themselves. For example: Seibu Hire, Seibu Kankō Bus, Seibu Sōgōkikaku and Seibu Kōgen Bus are all subsidiaries of Seibu Bus.[18] The table below details the companies affiliated with Seibu Holdings listed in Japanese hiragana order.[19]

Company Name
(Japanese)		 English Name Year
founded		 Overview References
アドホック株式会社 ADHOC Co.,Ltd. 1994 Pet care company operating in Tokyo Metropolitan Area. Employs 82. [20]
伊豆箱根鉄道株式会社 Izuhakone Railway Co.,Ltd. 1916 Passenger rail company serving Shizuoka prefecture. Employs 444. [21]
近江鉄道株式会社 Ohmi Railway Co.,Ltd. 1896 Passenger rail company serving western Shiga prefecture. [22]
サウスコハラウォーターコーポレーション South Kohala Wastewater Corp. 1995 Wastewater company operating in Hawaii. [19][23][24]
西武観光バス株式会社 Seibu Kankō Bus Co., Ltd. 1988 Tokyo tour bus company with a fleet of eighty-eight vehicles. A subsidiary of Seibu Bus which employs 196. [25]
西武建材株式会社 Seibu Kenzai Co., Ltd. 1974 A buildings material supplier based in Tokorozawa, Saitama. A subsidiary of Seibu Construction which employs 96. [26]
西武建設株式会社 Seibu Construction Co., Ltd. 1941 A construction company based in Tokorozawa, Saitama. Employs 695. [27]
西武高原バス株式会社 Seibu Kōgen Bus Co., Ltd. 1991 Bus company serving Nagano Prefecture focusing on Karuizawa, Nagano. Subsidiary of Seibu Bus. [28]
西武造園株式会社 Seibu Landscape Co.,Ltd. 2000 Landscape gardening agency which specialises in parks. [29]
株式会社西武SCCAT Seibu SCCAT Co.,Ltd. 1983 Facility management company based in Saitama prefecture. Company name is an acronym for "Safety, Care, Comfort, ATmosphere". Founded as Seibu Sōgōkikaku Co., Ltd., the current name was adopted in 2012 when the present Seibu Sōgōkikaku Co., Ltd. split from Seibu SCCAT. Employs 895. [30][31]
株式会社西武総合企画 Seibu Sōgōkikaku Co., Ltd. 2012 Coach operator based in Saitama prefecture with a fleet of 203 vehicles. A subsidiary of Seibu Bus which split from Seibu SCCAT in 2012. Employs 297. [31]
西武鉄道株式会社 Seibu Railway Co.,Ltd. 1912 Passenger rail company serving western Tokyo Metropolitan Area. Employs 3,673. [14]
西武電設工業株式会社 Seibu Electrical Construction Co.,Ltd. 1997 Electrical construction company based in Tokorozawa, Saitama. Employs 97. [32]
西武トラベル株式会社 Seibu Travel, Inc. 1970 Japanese travel agency for domestic and international travel. [33]
西武ハイヤー株式会社 Seibu Hire Co.,Ltd. 1967 Taxi hire company based in Saitama. A subsidiary of Seibu Bus which employs 960. [34]
西武バス株式会社 Seibu Bus Co.,Ltd. 1932 Bus company serving Tokyo Metropolitan Area. Employs 1,851. [18]
株式会社西武プロパティーズ Seibu Properties Inc. 1974 Real estate company serving Tokyo Metropolitan Area. [35]
株式会社西武ライオンズ Seibu Lions 1950 Professional baseball club located in Saitama. [36]
西武緑化管理株式会社 Seibu Ryokuka Kanri Co.,Ltd. 1971 Company based in Kodaira which aims to preserve green spaces in the Tokyo Metropolitan Area. [37]
株式会社豊島園 Toshimaen Co.,Ltd. 1984 Amusement park located in Nerima, Tokyo. Employs 131. [38]
株式会社プリンスホテル Prince Hotels, Inc. 1956 Large Japanese hotel chain. Employs 6,737. [16]
株式会社横浜八景島 Yokohama Hakkeijima Inc. 1993 Amusement park and aquarium located in Kanazawa, Yokohama. Has 163 full-time employees. [39]
横浜緑地株式会社 Yokohama Yokuchi 1974 Landscape gardening agency based in Yokohama. [40]

References

  1. 1 2 会社概要 [Summary of Company] (in Japanese). Seibu Holdings. Retrieved August 7, 2014.
  2. 1 2 西武ＨＤ、純利益163億円に下方修正　訴訟関連損失52億円計上 [Seibu Holdings net profit adjusted downwards. Lawsuit sees a reduction in profit of ¥5.2 billion] (in Japanese). Nihon Keizai Shimbun. April 2, 2014. Retrieved August 7, 2014.
  3. ↑ "Kokudo faked names of all shareholdings when Seibu debuted in 1949". Kyodo News. March 15, 2005. Retrieved August 7, 2014.
  4. ↑ "Tycoon Tsutsumi -- from world's richest man to detention cell". Kyodo News. March 3, 2005. Retrieved August 7, 2014.
  5. 1 2 3 4 "Delisted Seibu Holdings back on TSE". Japan Times. April 23, 2014. Retrieved August 7, 2014.
  6. ↑ "Yoshiaki Tsutsumi". Forbes. October 2006. Retrieved August 12, 2014.
  7. ↑ "Japanese Billionaire Tsutsumi Pleads Guilty". Forbes. June 16, 2005. Retrieved August 12, 2014.
  8. ↑ 役員紹介 [Staff Introduction] (in Japanese). Seibu Holdings. Retrieved August 30, 2014.
  9. ↑ 西武ＨＤ常務執行役員「サーベラスの経営関与ない」 [Seibu Holdings Managing Director "No management involvement from Cerberus"] (in Japanese). Nihon Keizai Shimbun. July 23, 2014. Retrieved August 7, 2014.
  10. 1 2 3 西武ＨＤ後藤社長「沿線の皆さん、株を買ってください」 [Seibu Holdings manager Gotō: "those who live near Seibu Lines, please by shares"] (in Japanese). Asahi Shimbun. September 19, 2014. Retrieved September 19, 2014.
  11. ↑ 西武ＨＤ株、上場前の想定価格上回る　買いどこまで [Seibu Holdings exceeds its pre-relisting evaluation] (in Japanese). Nihon Keizai Shimbun. June 4, 2014. Retrieved January 22, 2015.
  12. ↑ 西武ＨＬＤ連日高値、観光事業では北陸新幹線も材料に上値見込む [Seibu Holdings' shares rising every day. In the tourism industry, the Hokuriku Shinkansen is anticipated to be a key ingredient in a price rise.] (in Japanese). Asahi Shimbun. January 21, 2015. Retrieved January 22, 2015.
  13. ↑ 西武ＨＤの時価総額、初の私鉄首位に　東急を抜く [Seibu Holdings' market capitalization is highest in private rail industry for the first time. Overtakes Tokyu.] (in Japanese). Sankei News. January 19, 2015. Retrieved January 22, 2015.
  14. 1 2 会社概要 [Summary of Company] (in Japanese). Seibu Railways. Retrieved January 22, 2015.
  15. ↑ ホテル一覧 [List of Hotels] (in Japanese). Prince Hotels. Retrieved August 7, 2014.
  16. 1 2 会社概要 [Summary of Company] (in Japanese). Prince Hotels. Retrieved August 7, 2014.
  17. ↑ 西武ＨＤの後藤社長「東京五輪にらみ東京プリンス改装も」訪日客取り込み強化 [Seibu Holdings' Gotō Takashi (director) "Eyeing the Tokyo Olympics. Remodelling Prince Hotels too". Intensifying drives to encourage people to visit Japan] (in Japanese). MSN Sankei News. September 18, 2014. Retrieved September 19, 2014.
  18. 1 2 会社概要 [Summary of Company] (in Japanese). Seibu Bus. Retrieved August 9, 2014.
  19. 1 2 企業一覧 [List of Enterprises] (in Japanese). Seibu Holdings. Retrieved August 9, 2014.
  20. ↑ 会社概要 [Summary of company] (in Japanese). ADHOC Co., Ltd. Retrieved August 9, 2014.
  21. ↑ 会社概要 [Summary of company] (in Japanese). Izuhakone Railway. Retrieved August 9, 2014.
  22. ↑ 企業情報 [Summary of enterprise] (in Japanese). Ohmi Railways. Retrieved August 9, 2014.
  23. ↑ "REGULATED WATER AND WASTEWATER COMPANIES IN HAWAII". Department of Commerce and Consumer Affairs (Hawaii). Retrieved August 30, 2014.
  24. ↑ "South Kohala Wastewater Corp.". Cortera. Retrieved August 30, 2014.
  25. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu Kankō Bus. Retrieved August 11, 2014.
  26. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu Kenzai. Retrieved August 18, 2014.
  27. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu Construction. Retrieved August 18, 2014.
  28. ↑ 西武高原バス株式会社 [Seibu Kōgen Bus Co., Ltd.] (in Japanese). Seibu Kōgen Bus. Retrieved August 12, 2014.
  29. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu Landscape. Retrieved August 10, 2014.
  30. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu SCCAT. Retrieved August 11, 2014.
  31. 1 2 会社概要 [Summary of Company] (in Japanese). Seibu Sōgōkikaku. Retrieved August 11, 2014.
  32. ↑ 会社案内 [Company Information] (in Japanese). Seibu Travel. Retrieved August 30, 2014.
  33. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu Travel. Retrieved August 9, 2014.
  34. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu Hire. Retrieved August 12, 2014.
  35. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu Properties. Retrieved August 12, 2014.
  36. ↑ 球団情報 [Information regarding baseball club] (in Japanese). Seibu Lions. Retrieved August 9, 2014.
  37. ↑ 会社概要 [Summary of Company] (in Japanese). Seibu Ryokuka Kanri. Retrieved August 13, 2014.
  38. ↑ 会社概要 [Summary of Company] (in Japanese). Toshimaen. Retrieved August 9, 2014.
  39. ↑ 会社概要 [Summary of Company] (in Japanese). Hakkeijima. Retrieved August 30, 2014.
  40. ↑ 会社概要 [Summary of Company] (in Japanese). Yokohama Yokuch. Retrieved January 22, 2015.
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