Monday February 7, 10:25 pm Eastern Time
Furukawa sees Y100 bln profit on JDS share sales
TOKYO, Feb 8 (Reuters) - Furukawa Electric Co Ltd said on Tuesday it expects a profit of 100 billion yen, or $933 million, from sales of 4.45 million of its shares in JDS Uniphase Corp (Toronto:JDU.TO - news) in August by Furukawa's Canadian subsidiary FEJ Holding Inc.
The profit will be booked in the year ending March 2001, a Furukawa spokesman said.
Furukawa, the parent company of FEJ holding Inc, a holding company in Canada, will receive part of the profit to improve its financial condition, including reducing its interest-bearing debt, the spokesman said.
Furukawa Electric shares closed the Tuesday morning session at 1,644 yen, down 48 yen or 2.84 percent.
FEJ holds 72.40 million shares, or 18.8 percent, in JDS Uniphase, the world's biggest supplier of parts for fibre optic equipment in phone networks.
FEJ had concluded a forward contract on Monday to sell 4.45 million shares in JDS Uniphase in August this year, it said.
As a result, ownership by FEJ in JDS Uniphase will be 17.2 percent in August if the number of outstanding shares at JDS Uniphase are unchanged, the spokesman said. |
