<PAGE> 1
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
SCHEDULE 14D-1/A
AMENDMENT NO. 3
TO
TENDER OFFER STATEMENT PURSUANT TO SECTION
14(d)(1) OF THE SECURITIES EXCHANGE ACT OF 1934
NIHON AMWAY KABUSHIKI KAISHA
(Exact name of Issuer as Specified in Charter)
AMWAY JAPAN LIMITED
(Translation of Issuer's Name in English)
N.A.J. CO., LTD.
(Bidder)
COMMON STOCK, NO PAR VALUE
AMERICAN DEPOSITARY SHARES, EACH REPRESENTING ONE-HALF OF ONE SHARE
OF COMMON STOCK, EVIDENCED BY AMERICAN DEPOSITARY RECEIPTS
(Title of class of securities)
03 234 J 10 0
(CUSIP Number of ADSs)
------------------------
CRAIG N. MEURLIN, ESQ.
SENIOR VICE PRESIDENT AND GENERAL COUNSEL
AMWAY CORPORATION
7575 FULTON STREET EAST
ADA, MICHIGAN 49355
(616) 787-6000
(Name, Address and Telephone Number of Person Authorized to
Receive Notice and Communications on Behalf of Bidder)
COPY TO:
THOMAS C. DANIELS, ESQ.
JONES, DAY, REAVIS & POGUE
NORTH POINT
901 LAKESIDE AVENUE
CLEVELAND, OHIO 44114
(216) 586-3939
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CALCULATION OF FILING FEE
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TRANSACTION VALUATION AMOUNT OF FILING FEE*
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$486,477,721.00 $97,294.00
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</TABLE>
* Estimated for purposes of calculating the amount of the filing fee only. The
amount assumes the purchase of 34,552,978 shares of common stock, no par
value, at Y1490 in cash per share. The exchange rate used to convert the yen
purchase price to dollars for purposes of calculating this filing fee was
Y105.83 = U.S.$1.00, the exchange rate prevailing on November 16, 1999.
[ ] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2)
and identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the form
or schedule and the date of its filing.
<TABLE>
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AMOUNT PREVIOUSLY PAID: FILING PARTY:
FORM OR REGISTRATION NO.: DATE FILED:
</TABLE>
(Continued on following pages)
Page 1 of 8 Pages
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SCHEDULE 14D-1
CUSIP No. 03 234 J 10 0
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1 NAME OF REPORTING PERSONS
N.A.J. CO., LTD.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCES OF FUNDS
BK
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [ ]
PURSUANT TO ITEMS 2(e) or 2(f)
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Japan
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES [ ]
CERTAIN SHARES
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
0
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10 TYPE OF REPORTING PERSON
CO
</TABLE>
2
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N.A.J. Co., Ltd., a joint stock corporation ("kabushiki kaisha") organized
under the laws of Japan ("Purchaser"), hereby amends and supplements, as set
forth in this Amendment No. 3, its Tender Offer Statement on Schedule 14D-1,
filed on November 18, 1999 and amended on November 26, 1999 and November 30,
1999 (as amended, the "Schedule 14D-1"), relating to the offer by Purchaser to
purchase all outstanding shares of the Common Stock, no par value (the "Common
Stock"), and American Depositary Shares, each representing one-half of one share
of Common Stock, that are beneficially owned by shareholders of Amway Japan
Limited, a joint stock corporation ("kabushiki kaisha") organized under the laws
of Japan. The item number and responses thereto below are in accordance with the
requirements of Schedule 14D-1. Capitalized terms used but not defined herein
have the meanings assigned to them in the Schedule 14D-1.
3
<PAGE> 4
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
The information set forth in Item 11 is hereby amended by adding the following
exhibit:
<TABLE>
<S> <C> <C>
(a) (1) Form of Offer to Purchase, dated November 18, 1999.**
(2) Form of Letter of Transmittal.**
(3) Form of Letter to Brokers, Dealers, Commercial Banks, Trust
Companies and Other Nominees.**
(4) Form of Letter to Clients for Use by Brokers, Dealers,
Commercial Banks, Trust Companies and Other Nominees.**
(5) Form of Guidelines for Certification of Taxpayer
Identification Number on Substitute Form W-9.**
(6) Form of Letter to AJL's Holders of Common Stock and ADSs.**
(7) Form of Press Release "Amway Japan's Principal Shareholders
to Commence Tender Offer For Outstanding Public Shares"
issued by AJL and the Principal Shareholders on November 15,
1999.**
(8) Form of English translation of Additional Information to the
Press Release on November 15, 1999.**
(9) Form of English translation of Notice of Approval of Tender
Offer, dated November 15, 1999.**
(10) Form of English translation of Announcement of Approval of
Tender Offer, dated November 15, 1999.**
(11) Form of English translation of Announcement of Merger, dated
November 15, 1999.**
(12) Form of Statement for AJL Distributors, dated November 15,
1999.**
(13) Form of Statement for AJL Employees on Electronic Bulletin
Board, dated November 15, 1999.**
(14) Form of Communications to Amway Distributors, dated November
15, 1999.**
(15) Form of Tender Offer Announcement to Amway Management and
Employees, dated November 15, 1999.**
(16) Form of Memorandum to Diamonds and Direct Distributors,
dated November 16, 1999.**
(17) Form of Press Release "Amway Japan's Principal Shareholders
Commence Tender Offer For Outstanding Public Shares" issued
by AJL and the Public Shareholders on November 18, 1999.**
(18) Form of English translation of Report of Announcement of
Opinion, dated November 18, 1999.**
(19) Form of English translation of the Public Notice, dated
November 18, 1999.**
(20) Form of Summary Advertisement published on November 18,
1999.**
(21) Form of English translations of Japanese Tender Offer
Explanatory Statement and Tender Offer Application Form,
dated November 18, 1999.**
(22) Form of Trustee Direction Form from the 401(k) Trustee.**
(23) Form of Letter to Participants of the 401(k) Plan (Amended
and Restated).**
(24) Form of Letter to AJL Shareholders from AJL, dated November
1999.**
(25) Form of Letter to AJL Shareholders from Purchaser, dated
November 1999.**
(26) Form of Question and Answer Memorandum to Distributors,
dated December 2, 1999.
(27) Form of English translation of the Public Notice, dated
December 7, 1999.
(28) Form of English translation of Japanese Tender Offer
Registration Statement, amended on December 7, 1999.
</TABLE>
4
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(b) (1) Form of Senior Bank Financing Commitment Letter among
Purchaser, ALAP, Apple Hold Co., L.P., New AAP Limited,
Amway Corporation and Morgan Guaranty Trust Company of New
York, Tokyo Branch, dated November 15, 1999.**
(2) Form of Term Sheet Regarding the Credit Facility.**
(c) (1) Form of Tender Offer Agreement, dated November 15, 1999, by
and among AJL, Purchaser and ALAP.**
(2) Form of Shareholder and Voting Agreement, by and among ALAP,
Purchaser and Certain Shareholders of AJL, dated as of
November 15, 1999.**
(3) Form of English translation of Memorandum Regarding Merger
between Purchaser and AJL, dated November 15, 1999.**
(d) Not Applicable.
(e) Not Applicable.
(f) Not Applicable.
(g) Consent of Deloitte Touche Tohmatsu.**
(h) Power of Attorney for Purchaser.**
</TABLE>
** Previously filed as exhibits to the Tender Offer Statement on Schedule 14D-1
filed by Purchaser on November 18, 1999 and amended on November 26, 1999 and
November 30, 1999.
5
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SIGNATURES
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Dated: December 7, 1999
N.A.J. CO., LTD
By: /s/ Lawrence M. Call
------------------------------------
Name: Lawrence M. Call
Title: Attorney-in-Fact
6
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EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
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<S> <C> <C>
(a) (1) Form of Offer to Purchase, dated November 18, 1999.**
(2) Form of Letter of Transmittal.**
(3) Form of Letter to Brokers, Dealers, Commercial Banks, Trust
Companies and Other Nominees.**
(4) Form of Letter to Clients for Use by Brokers, Dealers,
Commercial Banks, Trust Companies and Other Nominees.**
(5) Form of Guidelines for Certification of Taxpayer
Identification Number on Substitute Form W-9.**
(6) Form of Letter to AJL's Holders of Common Stock and ADSs.**
(7) Form of Press Release "Amway Japan's Principal Shareholders
to Commence Tender Offer For Outstanding Public Shares"
issued by AJL and the Principal Shareholders on November 15,
1999.**
(8) Form of English translation of Additional Information to the
Press Release on November 15, 1999.**
(9) Form of English translation of Notice of Approval of Tender
Offer, dated November 15, 1999.**
(10) Form of English translation of Announcement of Approval of
Tender Offer, dated November 15, 1999.**
(11) Form of English translation of Announcement of Merger, dated
November 15, 1999.**
(12) Form of Statement for AJL Distributors, dated November 15,
1999.**
(13) Form of Statement for AJL Employees on Electronic Bulletin
Board, dated November 15, 1999.**
(14) Form of Communications to Amway Distributors, dated November
15, 1999.**
(15) Form of Tender Offer Announcement to Amway Management and
Employees, dated November 15, 1999.**
(16) Form of Memorandum to Diamonds and Direct Distributors,
dated November 16, 1999.**
(17) Form of Press Release "Amway Japan's Principal Shareholders
Commence Tender Offer For Outstanding Public Shares" issued
by AJL and the Public Shareholders on November 18, 1999.**
(18) Form of English translation of Report of Announcement of
Opinion, dated November 18, 1999.**
(19) Form of English translation of the Public Notice, dated
November 18, 1999.**
(20) Form of Summary Advertisement published on November 18,
1999.**
(21) Form of English translations of Japanese Tender Offer
Explanatory Statement and Tender Offer Application Form,
dated November 18, 1999.**
(22) Form of Trustee Direction Form from the 401(k) Trustee.**
(23) Form of Letter to Participants of the 401(k) Plan (Amended
and Restated).**
(24) Form of Letter to AJL Shareholders from AJL, dated November
1999.**
(25) Form of Letter to AJL Shareholders from Purchaser, dated
November 1999.**
(26) Form of Question and Answer Memorandum to Distributors,
dated December 2, 1999.
</TABLE>
7
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<TABLE>
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EXHIBIT NO. DESCRIPTION
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(27) Form of English translation of the Public Notice, dated
December 7, 1999.
(28) Form of English translation of Japanese Tender Offer
Registration Statement, amended on December 7, 1999.
(b) (1) Form of Senior Bank Financing Commitment Letter among
Purchaser, ALAP, Apple Hold Co., L.P., New AAP Limited,
Amway Corporation and Morgan Guaranty Trust Company of New
York, Tokyo Branch, dated November 15, 1999.**
(2) Form of Term Sheet Regarding the Credit Facility.**
(c) (1) Form of Tender Offer Agreement, dated November 15, 1999, by
and among AJL, Purchaser and ALAP.**
(2) Form of Shareholder and Voting Agreement, by and among ALAP,
Purchaser and Certain Shareholders of AJL, dated as of
November 15, 1999.**
(3) Form of English translation of Memorandum Regarding Merger
between Purchaser and AJL, dated November 15, 1999.**
(d) Not Applicable.
(e) Not Applicable.
(f) Not Applicable.
(g) Consent of Deloitte Touche Tohmatsu.**
(h) Power of Attorney for Purchaser.**
</TABLE>
** Previously filed as exhibits to the Tender Offer Statement on Schedule 14D-1
filed by Purchaser on November 18, 1999 and amended on November 26, 1999 and
November 30, 1999.
8
<PAGE> 1
Exhibit (a)(26)
December 2, 1999
Q 1. WHAT IS REALLY HAPPENING HERE?
A 1. Most simply, the families have formed NAJ to make the tender offer to buy
the publicly traded shares. After the tender offer is done, the families,
through, NAJ, will own a significantly higher percentage of AJL's shares.
Shortly after the tender offer, NAJ will come to AJL and will propose to execute
a merger agreement between NAJ and AJL. NAJ would legally survive the merger,
but will be renamed AJL and will continue all of the business of AJL. There will
be an extraordinary shareholders meeting to approve the merger. While the
families will control enough shares to approve the merger, shareholders will
have the opportunity to exercise their appraisal rights and receive fair value.
This is the legal description. For you as distributors, these will be no changes
to your business as a result of these transactions.
Q 2. WHY CAN'T THE COMPANY MAKE UP MY LOSS; I AM A LOYAL AJL DISTRIBUTOR?
A 2. Japanese and American law both require that every shareholder receive equal
treatment in the tender offer. The families believe that they have offered a
full and fair price in light of conditions today.
Q 3. IF I DO NOT TENDER, HOW WILL I BE TREATED?
A 3. People who do not tender will continue to be AJL shareholders until the
merger is completed. In the process of merger procedures, shareholders will
again be given a choice - to either receive stock in the surviving company
(renamed AJL) or to ask the Company to buy their stock for fair value.
If you become a shareholder in the surviving company, you will receive all
rights accorded to shareholders. If dividends are paid, they will be paid on all
shares (other than fractional shares). Annual shareholder meetings will occur
and shareholders will be given notice and invited to attend. You will receive
all the documents that are legally required. This includes financial
information. Your ability to sell your shares will be limited, however, since
there will be no publicly traded market. And the dividend policy is likely to
change.
Q 4. IS NAJ DIFFERENT THAN AJL? WHY IS GARY SUMIHIRO REPRESENTATIVE DIRECTOR?
A 4. NAJ was formed by the families simply to do this transaction. After the
merger, while NAJ is the "legal" surviving company, in reality, the AJL business
will continue and the NAJ name will disappear.
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<PAGE> 2
Gary Sumihiro was chosen as Representative Director for the tender offer and the
merger because of the heavy legal requirements of the transaction. Once the AJL
business is combined with NAJ in the merger, Jim Payne and Doug DeVos will
become the Representative Directors. AJL management will continue to direct the
operation of the surviving company and you will all be distributors of the new
company. Your relationship with the AJL business will not change.
Q 5. WILL THE BUSINESS CHANGE AS A RESULT OF THE MERGER?
A 5. The merger is a legal requirement that is meant to optimize the efficiency
of the corporate structure. We fully expect there will be changes that continue
to improve the business for each Amway distributor. But these changes will not
be caused by the merger.
Q 6. WHEN IS THE MERGER LIKELY TO OCCUR?
A 6. The families want to move forward as quickly as possible on the merger.
However, it is still likely to take 4 to 6 months to complete.
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Exhibit (a)(27)
(Translation)
PUBLIC NOTICE OF CHANGE IN TERMS OF TENDER OFFER
December 7, 1999
7-1, Udagawacho, Shibuya-ku, Tokyo
N.A.J. Co., Ltd.
Gary K. Sumihiro, Representative Director
This is to notify that N.A.J. Co., Ltd. will change the terms, etc. of
tender offer prescribed in the "Public Notice of Commencement of Tender Offer"
dated November 18, 1999, as set forth below.
1. CONTENTS OF TENDER OFFER
(1) Name of Target Company
Amway Japan Limited
(2) Type of Shares or Other Securities Subject to Tender Offer
Shares of common stock with no par value
(3) Tender Offer Period
From Thursday, November 18, 1999 to Friday, December 17, 1999
2. CONTENTS OF CHANGE IN TERMS OF TENDER OFFER
(Note) Changed parts are underlined.
2. CONTENTS OF TENDER OFFER
(5) Number of Shares Proposed to be Purchased
(Before change)
Number of Shares Proposed to be Purchased: 34,312,778 Shares
----------
(Omitted)
<PAGE> 2
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(After change)
Number of Shares Proposed to be Purchased: 34,412,778 Shares
----------
(Omitted)
(6) Shareholding Ratio of Bidder after Tender Offer, Shareholding
Ratio of Special Related Parties as of Date of Public Notice
and Total Shareholding Ratio
(Before change)
Bidder: 23.82%
-----
Special Related Parties: 76.56%
Total: 100%
(Omitted)
(After change)
Bidder: 23.89%
-----
Special Related Parties: 76.56%
Total: 100%
(Omitted)
3. SHARES TENDERED PRIOR TO THE DATE OF THIS PUBLIC NOTICE WILL ALSO BE
PURCHASED UPON THE TERMS SO CHANGED.
<PAGE> 1
Exhibit (a)(28)
[Translation]
TENDER OFFER REGISTRATION STATEMENT
AS FILED ON NOVEMBER 18 AND AS AMENDED ON DECEMBER 7, 1999
N.A.J. CO., LTD.
<PAGE> 2
TENDER OFFER REGISTRATION STATEMENT
-----------------------------------
To: The Director of the Kanto Local Finance Bureau
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Date of Submission: November 18, 1999
Date of Amendment: December 7, 1999
Bidder:
Name : N.A.J. Co., Ltd.
Gary K. Sumihiro
Representative Director
Address : 7-1, Udagawacho, Shibuya-ku, Tokyo
Nearby Place of Contact : Same as above
Telephone : 03-5428-7000 (main number)
Contact Person : Yoshizo Matsushita
Director
Attorney-in-Fact:
Name : None
Address : None
Nearby Place of Contact : None
Telephone : None
Contact Person : None
Place Where Copies of Tender Offer Registration Statement
Are made Available for Public Inspection
---------------------------------------------------------
N.A.J. Co., Ltd.
7-1, Udagawacho, Shibuya-ku, Tokyo
Japan Securities Dealers Association
Nihonbashi Kabutocho 7-2, Chuo-ku, Tokyo
<PAGE> 3
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TABLE OF CONTENTS
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ITEM 1 OUTLINE OF TENDER OFFER 1
1. Name of Target Company 1
2. Type of Shares or Other Securities Subject to Tender Offer 1
3. Purposes of Tender Offer 1
4. Tender Offer Period, Tender Offer Price and Number of Shares
or Other Securities Proposed to Be Purchased 4
5. Shareholding Ratio After Tender Offer 6
6. Permission Concerning Acquisition of Shares or Other Securities 7
7. Manner of Tender and Manner of Cancellation of Agreements 7
8. Funds Required for Tender Offer 10
9. Matters Relating to Issuer of Securities Used as Consideration for
Tender Offer 13
10. Manner of Settlement 13
11. Other Conditions and Manners of Tender Offer 14
ITEM 2 MATTERS RELATING TO BIDDER 16
1. Outline of Company 16
2. Financial Condition 20
ITEM 3 SHARES OR OTHER SECURITIES OWNED AND TRADED BY BIDDER AND
SPECIAL RELATED PARTIES 21
1. Shares or Other Securities Owned as of Filing Date 21
2. Trading of Shares or Other Securities 37
3. Material Contracts Relating to Such Shares or Other Securities 37
4. Any Contract under Which Shares or Other Securities will Be
Purchased After Filing Date of Tender Offer Statement 38
ITEM 4 TRANSACTIONS BETWEEN BIDDER AND TARGET COMPANY 39
1. Any Material Transactions Between Bidder and Target Company or
Any of Its Officers 39
2. Any Agreement Between Bidder and Target Company or
Any of Its Officers 39
ITEM 5 MATTERS RELATING TO TARGET COMPANY 40
1. Profits and Loss, Etc. for Most Recent Three Years 40
2. Share Prices 40
</TABLE>
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3. Shareholders 41
4. Others 45
</TABLE>
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ITEM 1 OUTLINE OF TENDER OFFER
1. NAME OF TARGET COMPANY
Amway Japan Limited
2. TYPE OF SHARES OR OTHER SECURITIES SUBJECT TO TENDER OFFER
Shares of common stock with no par value
3. PURPOSES OF TENDER OFFER
The Target Company is primarily engaged in the import and distribution
in Japan of products developed and manufactured by Amway Corporation
(hereinafter "Amway U.S.A.") as well as in purchases and sales of products
manufactured in Japan through use of the technology of Amway U.S.A. Faced with
the continuing weakness of Japanese economic conditions, the business results of
the Target Company have declined in recent years. In order to overcome such
situation and improve performance, it is necessary to create a corporate
structure that will facilitate implementation of sound decisions and allow the
Target Company to pursue long-term business strategies without taking into
account the influence on the short-term outlook of the equities markets.
Further, it is necessary for the Target Company to be able to respond with
greater flexibility to the business reorganization being considered with other
Amway entities.
The founders of Amway U.S.A., Jay Van Andel and Richard M. DeVos and
their respective families, along with certain corporations, trusts, foundations
and other entities established by and for the benefit thereof (hereinafter
collectively, the "Principal Shareholders") already own 110,263,022 shares,
approximately 76% of the total issued shares of the common stock of the Target
Company. The Principal Shareholders believe the acquisition of all remaining
shares of the common stock of the Target Company is the most effective method of
satisfying the goals described above and will facilitate the provision of better
services and products to distributors and customers of the Target Company and
improve operating results.
In addition, the price of the Target Company's shares on the
over-the-counter market has languished for some time, and the volume of trading
has not provided sufficient liquidity for investors. Looking at the economic
situation in Japan, the Principal Shareholders believe there is little
possibility that either the share price or the volume of trading on the
over-the-counter market will significantly improve in the foreseeable future.
This Tender Offer will, by purchasing all remaining shares of the Target Company
at a 50.5% premium to the closing selling price of the Target Company's shares
on the over-the-counter market on November 12, 1999 (the date prior to the
announcement of this Tender Offer), provide all the shareholders other than the
Principal Shareholders the most efficient opportunity possible to sell their
shares at a price that is higher than any price that is reasonably foreseeable
over the next several years.
The Bidder has been informed by the Principal Shareholders that the
Principal Shareholders will not tender their shares in response to this Tender
Offer (other than an aggregate of 650,000 shares owned by the charitable
foundations established by certain of the Principal Shareholders (the
"Foundation Tendered Shares")). The Principal
<PAGE> 6
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Shareholders will contribute substantially all of their shares that are not
tendered in response to this Tender Offer (including shares other than the
Foundation Tendered Shares which are owned by the charitable foundation) (the
"First Contribution Shares"), to ALAP Hold Co., Ltd., a limited partnership
organized under the laws of Nevada and the parent of the Bidder and an entity
controlled and beneficially owned by the Principal Shareholders ("ALAP") or the
Bidder contemporaneously with the consummation of this Tender Offer. In
addition, no later than immediately prior to the effectiveness of the Merger
referred to below, the Principal Shareholders will contribute the remaining
shares other than the First Contribution Shares (the "Second Contribution
Shares", and together with the First Contribution Shares, the "Contribution
Shares") to ALAP.
The purpose of this Tender Offer is to facilitate Bidder's acquisition
of shares for cash, and thereby enable the Principal Shareholders to obtain
indirect control of 100% of the capital stock of the Target Company. Pursuant to
the Tender Offer Agreement (the "Agreement"), dated November 15, 1999, among the
Bidder, the Target Company and ALAP and the Memorandum regarding Merger dated
the same date, between the Bidder and the Target Company, the Bidder will first
make this Tender Offer and, after consummation of this Tender Offer, the Bidder
and the Target Company have agreed to take all steps required by law or
otherwise to effect the merger of the Target Company into the Bidder, thus the
Bidder being the surviving company (the "Merger"). After the Merger, the Bidder
will operate under the name Amway Japan Limited. In addition, simultaneously
with the execution of the Agreement, the Principal Shareholders, the Bidder and
ALAP have entered into the Shareholder and Voting Agreement (the "Shareholder
Agreement"). Pursuant to the Shareholder Agreement, the Principal Shareholders
have agreed, and ALAP has agreed, after contribution to it of the Contribution
Shares by the Principal Shareholders, not to transfer or otherwise dispose of
the Contribution Shares, and the Bidder has agreed not to transfer or otherwise
dispose of any First Contribution Shares contributed to it by the Principal
Shareholders (if any) or any shares purchased by it in this Tender Offer
(collectively, the "Purchased Shares"), in either case prior to consummation of
the Merger. Furthermore, the Principal Shareholders, ALAP and the Bidder have
agreed to vote the Second Contribution Shares, the First Contribution Shares and
the Purchased Shares, respectively, in favor of the Merger at the relevant
shareholder meeting. This assures that the necessary approval of the Merger will
be given by the Target Company's shareholders. As a result of the Merger, those
shareholders who do not tender their shares in response to this Tender Offer
will own shares of the Bidder's common stock. In addition, the shares of the
Target Company will be deregistered from the over-the-counter market and the
American Depositary Receipts thereof will be delisted from the New York Stock
Exchange. As a result, trading markets of the shares held by the shareholders
who do not tender to this Tender Offer will cease to exist and such shareholders
will in the future experience difficulty in selling their shares.
In the event that the Merger is consummated after this Tender Offer,
the terms and conditions of the Merger, including the merger ratio, will be set
forth in a definitive merger agreement to be entered into between the Bidder and
the Target Company. Depending on the merger ratio, shareholders of the Target
Company who do not tender their shares in response to this Tender Offer may,
with respect to all or a part of their shares, end up owing fractional shares in
the Target Company, which do not carry the rights to receive dividends and
certain other rights. Furthermore, the Principal Shareholders have indicated
their desire that the Target Company reduce or eliminate the dividends to
preserve cash after this Tender Offer. After completion of this Tender Offer,
the dividend policy for fiscal 2000
<PAGE> 7
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and beyond will be re-examined. It should be noted that under the Merger
procedures, shareholders to object to the Merger are entitled to an appraisal
right; however, consideration paid to descending shareholders could well be
different from the Purchase Price under this Tender Offer.
As of September 30, 1999, the Principal Shareholders owned
approximately 85% of the outstanding shares of common stock of Amway Asia
Pacific, Ltd. ("AAP"), an Amway group entity. The Principal Shareholders,
through Apple Hold Co., Ltd. (hereinafter "Apple Hold"), a limited partnership
established under the Bermuda law and its subsidiary, will conduct a separate
tender offer and the subsequent transactions (collectively, "AAP Transactions"),
thereby acquire all shares of the stock of AAP.
As a result of the Tender Offer and the subsequent Merger, the
Principal Shareholders will own, indirectly as limited partner of ALAP, all or
substantially all of the shares of the Target Company. In addition, as a result
of the AAP Transactions, the Principal Shareholders will own, indirectly as
limited partners of Apple Hold, all of the outstanding shares of AAP. Currently,
the Principal Shareholders are the sole owners of Amway U.S.A. and various
subsidiaries and affiliates thereof. The Principal Shareholders may desire at
some point in the future to transfer all of their ownership in such Amway group
entities to ALAP. Apple Hold or affiliate of each of ALAP or Apple Hold. After
completion of the Merger and the AAP Transactions, the Principal Shareholders
may consider from time to time, restructuring transactions of Amway entities, in
order to improve liquidity and value of their investment, including possible
public offering by the Bidder or one or more of its affiliates.
The Bidder will pay for the shares purchased pursuant to this Tender
Offer with the Funds borrowed (assuming that all of the shares held by
shareholders other than the Principal Shareholders and the Foundation Tendered
Shares are tendered, approximately U.S.$505 million) under a new senior credit
facility with the Morgan Guaranty Trust Company of New York, Tokyo Branch
("Morgan Guaranty"), an affiliate of J.P. Morgan & Co. and other syndicate loan
banks. This Tender Offer is not, however, contingent upon receiving such loans.
As a result of the Merger, the Target Company will be merged into the Bidder and
will cease to exist, and therefore such loans will be assumed by the surviving
company combining the Target Company and the Bidder. The credit facility will
contain covenants that will restrict the Bidder from, among other things,
selling substantially all of its assets, incurring liens on its assets, and
incurring debt. In addition, the credit facility will require the Bidder, among
other things, to maintain or limit, as the case may be, dividend payments,
consolidated net worth and payments to shareholder. The increase in debt could
have important consequences to the remaining shareholders of the Target Company.
For example, it could require the Target Company to dedicate a substantial
portion of its cash flow from operations to pay principal and interest on the
said loans, which will reduce the availability of cash flow to fund working
capital, capital expenditures, business development activities, dividends and
other general corporate purposes and limit, among other things, the Target
Company's ability to borrow money in the future for working capital, capital
expenditures and other purposes.
<PAGE> 8
-4-
4. TENDER OFFER PERIOD, TENDER OFFER PRICE AND NUMBER OF SHARES OR OTHER
SECURITIES PROPOSED TO BE PURCHASED
Tender Offer Period:
From November 18, 1999 to December 17, 1999 (30 days)
Date of Public Notice:
November 18, 1999 and December 7, 1999
Name of Newspapers Carrying Public Notice:
Nihon Keizai Shimbun and Asahi Shimbun
Tender Offer Price:
<TABLE>
<CAPTION>
- --------------------------------- ------------------------------------------------------------------------------
<S> <C>
Type of Securities Tender Offer Price
- --------------------------------- ------------------------------------------------------------------------------
Shares \1,490 per share
- --------------------------------- ------------------------------------------------------------------------------
Instruments Evidencing
Stock Subscription Rights -
- --------------------------------- ------------------------------------------------------------------------------
Securities Representing
Stock Subscription Rights -
- --------------------------------- ------------------------------------------------------------------------------
Convertible Bonds -
- --------------------------------- ------------------------------------------------------------------------------
Bonds with Warrants -
- --------------------------------- ------------------------------------------------------------------------------
Depositary Receipts -
- --------------------------------- ------------------------------------------------------------------------------
The Tender Offer Price of \1,490 per share proposed by the Bidder is an
amount calculated by adding a 50.5% premium to the latest selling price
of the shares of the Target Company at 3:00 p.m. on November 12, 1999 (the
date prior to the announcement of this Tender Offer) announced by the
Japan Securities Dealers Association. Such price has been determined to
Basis of Calculation enable the Bidder to purchase as many shares as possible, taking into
consideration the high possibilities of deregistration of the Target
Company from the over-the-counter market and other factors.
- --------------------------------- ------------------------------------------------------------------------------
</TABLE>
<PAGE> 9
-5-
Number of Shares or Other Securities Proposed to Be Purchased:
<TABLE>
<CAPTION>
- --------------------------------- ------------------------------------------------------------------------------
Type of Securities Number as Expressed with Reference to Shares
- ------------------------------- --------------------------------------------------------------------------------
Number Proposed to Be Excess Number Proposed
Purchased to Be Purchased Total
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 34,412,778 shares - 34,412,778 shares
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - - -
- ------------------------------- ----------------------------------------------------- --------------------------
Total (a) 34,412,778 shares
- ------------------------------- ----------------------------------------------------- --------------------------
Total of Securities Other
Than Shares (b) ( - )
- ------------------------------- ----------------------------------------------------- --------------------------
</TABLE>
(Note 1) Out of 110,263,022 shares of the Target Company held by the
Principal Shareholders, 109,613,022 shares are not subject to
acquisition under this Tender Offer. Therefore, such shares are
not included in the number proposed to be purchased (see "3.
Material Contracts Relating to Such Shares or Other Securities" of
"Item 3 Shares or Other Securities Owned and Traded by Bidder and
Special Related Parties").
(Note 2) Shares constituting less than one unit and Treasury Shares are
subject to the Tender Offer. (Provided, however, that the share
certificates must be tendered).
<PAGE> 10
-6-
5. SHAREHOLDING RATIO AFTER TENDER OFFER
Number of Shares Owned as of Filing Date of Tender Offer Registration Statement:
<TABLE>
<CAPTION>
- ---------------------------------------- ------------------------------- ---------------------------------------
<S> <C> <C>
Number Owned by Bidder (of Which
Number of Securities Other Than - shares (c) ( - shares) (d)
Shares)
- ---------------------------------------- ------------------------------- ---------------------------------------
Number Owned by Special Related
Parties (of Which Number of Securities 110,273,740 shares (e) (7,167 shares) (f)
Other Than Shares)
- ---------------------------------------- ------------------------------- ---------------------------------------
</TABLE>
Total Number of Outstanding Shares of Target Company (as of November 18, 1999)
<TABLE>
<CAPTION>
- --------------------------------------------------------- -----------------------------------------------------
<S> <C>
Total Number of Outstanding Shares 144,025,800 shares (g)
- --------------------------------------------------------- -----------------------------------------------------
Number of Non-Voting Shares - shares (h)
- --------------------------------------------------------- -----------------------------------------------------
Number of Treasury Shares and Shares Subject to Certain
Reciprocal Holding, as to Which Voting Power May Not Be 99 shares (i)
Exercised
- --------------------------------------------------------- -----------------------------------------------------
Total Number of Outstanding Shares Based on which
Shareholding Ratio after Tender Offer Shall Be 144,025,701 shares (j)
Calculated: (g) - (h) - (i)
- --------------------------------------------------------- -----------------------------------------------------
</TABLE>
Shareholding Ratio After Tender Offer:
<TABLE>
<CAPTION>
- -------------------------------------------------------- -------------------------------------------------------
<S> <C> <C>
Numerator (c) + (e) + (a) 144,032,967 shares (k)
- -------------------------------------------------------- -------------------------------------------------------
Denominator (j) + (d) + (f) + (b) + (i) 144,032,967 shares (l)
- -------------------------------------------------------- -------------------------------------------------------
Shareholding Ratio (k)/(l) x 100 100%
- -------------------------------------------------------- -------------------------------------------------------
</TABLE>
(Note 1) Among shares held by Special Related Parties, 653,551 shares
being the aggregate of the Foundation Tendered Shares and shares
held by officers of the Bidder are included in the number of
shares proposed to be purchased by the Bidder pursuant to the
Tender Offer ((a) above). Accordingly, such number of shares has
not been taken into account twice in calculating the shareholding
ratio (numerator (k)) after the Tender Offer.
(Note 2) As Treasury Shares are included in the shares to be acquired
pursuant to the Tender Offer, they have been added to the
denominator (l) to be used to calculate the shareholding ratio
after the Tender Offer.
(Note 3) Fractions after the third decimal place have been rounded.
<PAGE> 11
-7-
6. PERMISSION CONCERNING ACQUISITION OF SHARES OR OTHER SECURITIES
None.
7. MANNER OF TENDER AND MANNER OF CANCELLATION OF AGREEMENTS
(1) Manner of Tender:
-----------------
(i) Tender Offer Agent: Nikko Salomon Smith Barney
Limited
2-20, Akasaka 5-chome,
Minato-ku, Tokyo
The Tender Offer Agent appoints the following as its
Sub-Agent to entrust it with certain business of the
Tender Offer Agent:
The Nikko Securities Co., Ltd.
3-1, Marunouchi 3-chome,
Chiyoda-ku, Tokyo
(ii) A tendering shareholder will be required to fill out
the "Tender Offer Application Form" and submit it
together with the share certificates representing the
shares to be tendered. If the relevant share
certificates are held in custody by the Tender Offer
Agent or the Sub-Agent (or by the Japan Securities
Depositary Center (the "JASDEC") through the Tender
Offer Agent or the Sub-Agent), please submit the
receipts for such custody instead of such share
certificates. Shareholders who have been receiving
monthly reports from the Tender Offer Agent or the
Sub-Agent regarding such shares held in custody by it
do not have to submit such receipt, either. A
tendering shareholder, when tendering, need to bring
its seal, as well as the "Tender Offer Application
Form" referred to above. If no account is held at
either the Tokyo Branch of the Tender Offer Agent or
the Sub-Agent, a tendering shareholder is required to
newly open an account thereat.
A tender may be made by submitting required documents
at Morgan Stanley Japan Ltd., Tokyo Branch (to become
Morgan Stanley Dean Witter Japan Limited from
December 1, 1999) which will act as an intermediary
to the Tender Offer Agent (hereinafter the
"Securities Dealer Intermediary"); provided, however,
that in the event of tender through the Securities
Dealer Intermediary, please take care with respect to
the number of days required for the relevant
procedures.
(iii) Foreign shareholders must tender their shares through
their standing agents in Japan.
(iv) Individual shareholders, when tendering, are required
to make an election regarding taxation on capital
gains on shares (Note 1). In cases of individual
shareholders who elect declaration taxation,
corporate shareholders, Foreign shareholders
tendering through their standing agents in Japan or
where an account is newly opened at Nikko Salomon
Smith Barney Limited, Tokyo Branch and The
<PAGE> 12
-8-
Nikko Securities Co., Ltd., some form of proof of
identity (Note 2) is also required to be submitted.
(Note 1) Election of either withholding or declaration
regarding capital gains on shares (for
individual shareholders):
(a) Shareholders who elect withholding
taxation:
As any capital gain from the sale of
the shares would be subject to
withholding taxation, it is not
necessary to file a final return. In
this case, an income tax equal to 1.05%
of the purchase price would be withheld
at the settlement of the Tender Offer.
(b) Shareholders who elect declaration
taxation:
As any capital gain from the sale of
the shares would be subject to
declaration taxation, the shareholder
would need to file a final tax return.
In this case, while no income tax will
be withheld at the settlement of the
Tender Offer, tendering shareholders
would generally have to pay income tax
equal to 20% of the taxable capital
gain on the shares and a residence tax
equal to 6% of such taxable capital
gain.
(Note 2) Proof of Identity
Shareholders who elect to use declaration
taxation as explained in paragraph (b) of (Note
1), corporate shareholders, foreign shareholders
tendering through their standing agents in
Japan, or shareholders who newly open their
accounts at Nikko Salomon Smith Barney Limited,
Tokyo Branch or The Nikko Securities Co., Ltd.
will be required to submit one of the following
documents as proof of identity:
In the case of individual shareholders:
Resident's card (juminhyo) Health
Insurance Card (kenko hokensho) or
Driver's license or similar document.
In case of a corporate shareholder:
A certified copy of its commercial
register
In case of a foreign shareholder:
In addition to the documentation
specified above concerning its standing
agent, a copy of the power of attorney
or the contract (specifying the name of
the relevant foreign shareholder, the
name of its representative and its
address outside Japan) evidencing the
existence of the agency agreement
between such shareholder and its
standing agent.
<PAGE> 13
-9-
(v) Upon acceptance of each tender, the Tender Offer
Agent and the Sub-Agent will deliver a Tender Offer
Acceptance Card to the tendering shareholder (or to
the Securities Dealer Intermediary, if tender is made
through the Securities Dealer Intermediary).
(vi) Tender of shares will be accepted by the Tokyo branch
of the Tender Offer Agent as well as the head office
and any Japanese branch of the Sub-Agent until the
last day of the tender offer period (December 17,
1999).
(2) Manner of Cancellation of Agreements by Tendering
-------------------------------------------------
Shareholders:
-------------
Tendering shareholders may, at any time during the
tender offer period, cancel their agreements for tender of
shares.
If a tendering shareholder wishes to cancel its
agreement for tender of shares, it must deliver, or send by
mail, the cancellation notice (consisting of (i) the Tender
Offer Acceptance Card and (ii) a document stating that such
shareholder cancels its agreement for tender of shares) to the
person designated below not later than the last day of the
tender offer period. The cancellation of such agreement will
take effect at the time when the cancellation notice is
delivered to, or reaches, the person designated below.
Consequently, it should be noted that if the cancellation
notice is sent by mail, it must reach such person not later
than the last day of the tender offer period.
Persons authorized to receive cancellation notices:
Nikko Salomon Smith Barney Limited, Tokyo Branch
2-20, Akasaka 5-chome, Minato-ku, Tokyo
The Nikko Securities Co., Ltd.
3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo
(3) Manner of Return of Shares or Other Securities:
-----------------------------------------------
If any tendering shareholder cancels its agreement
for tender of shares in the manner set forth in "(2) Manner of
Cancellation of Agreements by Tendering Shareholders" above,
the relevant share certificates will be promptly returned to
such shareholder in the manner set forth in "(4) Manner of
Return of Shares or Other Securities" under "10. Manner of
Settlement" below after the completion of the procedure for
such cancellation.
(4) Name and Location of Head Office of Securities Company and/or
-------------------------------------------------------------
Bank That Will Take Custody of, and Return, Shares or Other
-----------------------------------------------------------
Securities:
-----------
Nikko Salomon Smith Barney Limited, Tokyo Branch
2-20, Akasaka 5-chome, Minato-ku, Tokyo
<PAGE> 14
-10-
The Nikko Securities Co., Ltd.
3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo
(5) Tender Offer For Non-Par Value Common Stock of the Company
----------------------------------------------------------
represented by ADSs in the United States:
-----------------------------------------
American Depositary Shares ("ADSs") representing shares of
non-par value common stock of the Target Company are listed on the New
York Stock Exchange. As of August 31, 1999 the number of shares of
non-par value common stock represented by ADSs was 8,482,200 (one ADS
represents one-half share of the non-par value common stock of the
Target Company). The Bidder will conduct a tender offer for ADSs in the
United States in accordance with the Securities Exchange Act of 1934
and Rules 14D and 13E and Rule 10b-13 under such Act in order to enable
ADS holders to participate in the tender offer.
ADS holders may participate in the above tender offer by
tendering to First Chicago Trust Company of New York in the United
States (hereinafter the "Depositary") from November 18, 1999 to
December 17, 1999, New York Time. In addition, ADS holders may cancel
their ADSs, receive the shares of non-par value common stock of the
Target Company represented by such ADSs and tender such shares to the
Tender Offer in Japan prior to the expiration thereof, in accordance
with the manner set forth in "(1) Manner of Tender" above. Therefore,
the number of shares or other securities proposed to be purchased set
out in "4. Tender Offer Period, Tender Offer Price and Number of Shares
or Other Securities Proposed to Be Purchased" above includes the
non-par value shares of common stock of the Target Company represented
by ADSs.
8. FUNDS REQUIRED FOR TENDER OFFER
(1) Funds Required for Tender Offer:
--------------------------------
<TABLE>
<CAPTION>
- ----------------------------------- ----------------------------------------------------------------------------
Purchase Price (a) \51,126 million
- ----------------------------------- ----------------------------------------------------------------------------
<S> <C> <C>
Non-Cash Consideration Type - Total Number -
- ----------------------------------- ----------------------------------------------------------------------------
Fees (b) \500 million
- ----------------------------------- ----------------------------------------------------------------------------
Others (c) \55 million
- ----------------------------------- ----------------------------------------------------------------------------
Total (a) + (b) + (c) \51,681 million
- ----------------------------------- ----------------------------------------------------------------------------
</TABLE>
(Note 1) The amount indicated under "Others (c)" represents an estimate
of miscellaneous expenses, including expenses for public notices
and other amounts relating to this Tender Offer.
(Note 2) In addition, other expenses, including those payable to the
Tender Offer Agent as well as legal fees will be incurred, but the
amounts of such expenses have not yet been determined.
<PAGE> 15
-11-
(2) Deposits, Borrowings and Other Funds That May Be Applied for
------------------------------------------------------------
Tender Offer:
-------------
Deposit as of Day Immediately Prior to Filing Date:
<TABLE>
<CAPTION>
- --------------------------------------------------------- ------------------------------------------------------
Type Amount
- --------------------------------------------------------- ------------------------------------------------------
<S> <C> <C>
- -
- --------------------------------------------------------- ------------------------------------------------------
Total - (a)
- --------------------------------------------------------- ------------------------------------------------------
</TABLE>
Borrowings as of Day Immediately Prior to Filing Date:
<TABLE>
<CAPTION>
- ----------------------------- --------------------------- -------------------------- ---------------------------
Type of Lender Name of Lender Summary of Loan Agreement Amount
- ----------------------------- --------------------------- -------------------------- ---------------------------
<S> <C> <C> <C>
Financial Institution
(1) - - -
- ----------------------------- --------------------------- -------------------------- ---------------------------
Financial Institution
(2) - - - -
- ----------------------------- --------------------------- -------------------------- ---------------------------
Others - - - -
- ------------------------------------------------------------------------------------ ---------------------------
Total -
- ------------------------------------------------------------------------------------ ---------------------------
</TABLE>
<PAGE> 16
-12-
Borrowings Scheduled After Filing Date:
<TABLE>
<CAPTION>
- ----------------------------- ------------------------ ---------------------------- ----------------------------
Name and Address of
Type of Lender Lender Summary of Loan Agreement Amount
- ----------------------------- ------------------------ ---------------------------- ----------------------------
<S> <C> <C> <C>
Financial Institution
(1) - - -
- ----------------------------- ------------------------ ---------------------------- ----------------------------
It is expected that the
senior credit facility
will be unsecured and
will consist of one or
more term loans.
Repayments under the
credit facility will
begin in or about
December 2000 and end in
or about December 2005.
Financial Institution (2) Morgan Guaranty and The interest rate of the
Bank other loan syndicates facility will be the LIBO U.S.$505 million
Rate plus a margin equal
to 6.35% for amounts
borrowed in the first
eight months of the
facility and as
determined by Morgan
Guaranty based on the
Bidder's creditworthiness
thereafter.
- ----------------------------- ------------------------ ---------------------------- ----------------------------
Others - - - -
- ----------------------------------------------------------------------------------- ----------------------------
Total U.S.$505 million (b)
- ----------------------------------------------------------------------------------- ----------------------------
</TABLE>
Other Manners of Financing:
<TABLE>
<CAPTION>
- --------------------------------------------------------- ------------------------------------------------------
Summary Amount
- --------------------------------------------------------- ------------------------------------------------------
<S> <C>
- -
- --------------------------------------------------------- ------------------------------------------------------
Total - (c)
- --------------------------------------------------------- ------------------------------------------------------
</TABLE>
Grand Total ((a) + (b) + (c)): U.S.$505 million
(Note) The Bidder will enter into hedging arrangements with Morgan
Guaranty effectively fixing the interest cost under the facility
and translating the
<PAGE> 17
-13-
payments of principal and interest to Yen. The credit facility
will contain covenants that will restrict each of the Bidder and
its subsidiaries from, among other things, selling substantially
all of its assets, incurring liens on its assets (subject to
dollar limit exceptions) and incurring debt (subject to dollar
limit exceptions). In addition, the credit facility will require
the Bidder to maintain or limit, as the case may be, dividend
levels, consolidated net worth, consolidated interest coverage
ratios, cash flow ratios and restricted payments to shareholders.
Finally, each of ALAP, Apple Hold and its subsidiary has jointly
and severally guaranteed the obligations of the Bidder under the
credit facility. Other conditions of the senior credit facility
are expected to be those customary for similar debt transactions.
(3) Relationship Between Bidder and Issuer of Securities Used as
------------------------------------------------------------
Consideration for Tender Offer:
-------------------------------
Not applicable.
9. MATTERS RELATING TO ISSUER OF SECURITIES USED AS CONSIDERATION FOR
TENDER OFFER
Not applicable.
10. MANNER OF SETTLEMENT
(1) Name and Location of Head Office of Securities Company and/or
-------------------------------------------------------------
Bank that will Handle Settlement of Tender Offer:
-------------------------------------------------
Nikko Salomon Smith Barney Limited, Tokyo Branch
2-20, Akasaka 5-chome, Minato-ku, Tokyo
The Nikko Securities Co., Ltd.
3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo
(2) Commencement Date of Settlement:
--------------------------------
Wednesday, December 22, 1999
(3) Manner of Settlement:
---------------------
Notice of purchase of shares will be mailed to tendering
shareholders at their addresses without delay after the expiration of
the tender offer period.
The purchase price of tendered shares will be paid in cash.
For individual shareholders who elect withholding taxation of capital
gains, the Tender Offer Agent or the Sub-Agent shall promptly after the
commencement date of settlement remit the purchase price to the
tendering shareholder (or if a Securities Dealer Intermediary is used,
to said Securities Dealer Intermediary) at its designated account after
deduction of withholding tax equal to 1.05% of the purchase price.
<PAGE> 18
-14-
(4) Manner of Return of Shares or Other Securities:
-----------------------------------------------
If tendered shares are not purchased pursuant to the
conditions set out in "(2) Any Conditions for Revocation of Tender
Offer and Manner of Disclosure of Such Revocation" under "11. Other
Conditions and Manners of Tender Offer" below, then the share
certificates which must be returned as a result thereof will be
returned to the relevant tendering shareholders in the manner set forth
below promptly after the date of revocation thereof.
(i) Share certificates submitted to the Tender Offer
Agent or the Sub-Agent for tender representing shares
that are not purchased will be mailed or delivered to
the shareholder.
(ii) With respect to the share certificates held in
custody by the Tender Offer Agent or the Sub-Agent
(or the JASDEC through the Tender Offer Agent or the
Sub-Agent) that are tendered, share certificates
representing shares that are not purchased will be
returned to the same status as at the time of tender.
(iii) In the event that tender was passed on to the Tender
Offer Agent by the Securities Dealer Intermediary via
a transfer of shares between their accounts at the
JASDEC, shares that are not purchased will be
returned to the account of the Securities Dealer
Intermediary.
11. OTHER CONDITIONS AND MANNERS OF TENDER OFFER
(1) Any Conditions Listed in Each Sub-Paragraph of Paragraph 4 of
-------------------------------------------------------------
Article 27-13 of the Securities and Exchange Law:
-------------------------------------------------
The Bidder will purchase all shares tendered.
(2) Any Conditions for Revocation of Tender Offer and Manner of
-----------------------------------------------------------
Disclosure of Such Revocation:
------------------------------
This Tender Offer may be revoked, if any of the events
specified in Article 14, Paragraph 1, Sub-paragraph 1, items (a)
through (e) and (g), Sub-paragraph 2, items (a) through (g) and (i) and
Sub-paragraph 3 of the Securities and Exchange Law Enforcement Order
occurs, or if there has been any material change in the circumstances
specified in Article 14, Paragraph 2, Sub-paragraphs 3 through 6 of the
Securities and Exchange Law Enforcement Order.
If this Tender Offer is to be revoked, public notice will be
given in Nihon Keizai Shimbun and Asahi Shimbun; provided, however,
that, if it is difficult to make public notice by the last day of the
tender offer period, such revocation shall be announced in the manner
prescribed in Article 20 of the Ministerial Ordinance Concerning
Disclosure Relating to Tender Offer of Shares or Other Securities by
any Person Other than the Issuing Company (the "Ministerial
Ordinance"), which announcement shall forthwith be followed by public
notice.
<PAGE> 19
-15-
(3) Matters Relating to Cancellation Rights of Tendered
---------------------------------------------------
Shareholders:
-------------
Tendering shareholders may cancel their agreements for tender
of shares at any time during the tender offer period. The manner of
such cancellation is set out in "(2) Manner of Cancellation of
Agreements by Tendering Shareholders" under "7. Manner of Tender and
Manner of Cancellation of Agreements" above.
Even if any tendering shareholder cancels its agreement for
tender of shares, the Bidder will not demand payment of damages or
penalties by such shareholder. Furthermore, expenses necessary for
returning the share certificates held in custody will be borne by the
Bidder.
(4) Manner of Disclosure of Any Change in Terms of Tender Offer:
------------------------------------------------------------
If any term of this Tender Offer is to be changed, public
notice thereof will be given in Nihon Keizai Shimbun and Asahi Shimbun;
provided, however, that, if it is difficult to make public notice by
the last day of the tender offer period, such change shall be announced
in the manner prescribed by Article 20 of the Ministerial Ordinance,
which announcement shall forthwith be followed by public notice. Shares
tendered prior to the date of such public notice will also be purchased
upon the terms so changed.
(5) Manner of Disclosure of Filing of Amendment to Tender Offer
-----------------------------------------------------------
Registration Statement:
-----------------------
If any amendment to the Tender Offer Registration Statement is
filed with the Director of the Kanto Local Finance Bureau, the contents
of such amendment will forthwith be announced in the manner prescribed
by Article 20 of the Ministerial Ordinance, to the extent that they are
relevant to the public notice of commencement of this Tender Offer. In
such case, the Tender Offer Explanatory Statement will be immediately
amended, and copies of the Tender Offer Explanatory Statement, as
amended, will be delivered to the tendering shareholders to which
copies of the Tender Offer Explanatory Statement, as initially
prepared, were delivered; provided, however, that, if such amendment is
immaterial, the amendment may be effected by preparing, and delivering
to the tendering shareholders, a document setting out the reason for
the amendment, the amended matters and the description after the
amendment.
(6) Manner of Disclosure of Results of Tender Offer:
------------------------------------------------
The results of this Tender Offer will be announced on the day
immediately following the last day of the tender offer period in the
manner prescribed by Article 20 of the Ministerial Ordinance.
<PAGE> 20
-16-
ITEM 2 MATTERS RELATING TO BIDDER
1. OUTLINE OF COMPANY
(1) History of Company:
-------------------
The Bidder was established on November 1, 1999 as a
wholly-owned subsidiary of ALAP Hold Co., Ltd., a limited partnership
under the laws of the United States.
(2) Business Purpose and Outline of Business:
-----------------------------------------
(i) Business Purpose:
1. the import, export, sale and sale for
consignment of the following goods:
(1) soaps, cleansers, detergents,
quasi-pharmaceuticals, cosmetics
and cosmetic accessories;
(2) nutritionally-enriched food
supplements (containing nutritive
elements such as vitamins, calcium,
proteins and fats, and natural
fibers), macaroni, spaghetti and
other noodles, food additives,
seasonings, jam, confectioneries and
soft drinks;
(3) coffee, tea, cocoa and the like;
(4) pet food;
(5) clothing, textile and accessories;
(6) writing materials, stationery,
office supplies;
(7) cooking utensils, tableware and
household goods;
(8) household electrical appliances;
(9) chemical products such as nylon,
rayon and vinal;
(10) leather, leather products and cloth
products such as bags;
(11) toys and playing materials;
(12) flowers and other plants; and
(13) medical instruments and health
equipment;
<PAGE> 21
-17-
2. the publishing and sale of magazines and
other periodicals and books;
3. the import, export, production, and sale of
compact discs, cassette tapes, video tapes,
phonographic records and other types of
visual and audio software;
4. the import, export and sale of cameras,
photographic film, and photographic
equipment;
5. the import, export and sale of
telecommunications equipment, receiving set
of satellite broadcasting and any other types
of communication appliances or equipment and
all related software;
6. providing business with telecommunications
services by using satellites, cable lines and
Internet:
7. the consulting business and the intermediary
business related to the preceding two
paragraphs;
8. the liability insurance agency business;
9. the business of introduction of prospective
life insurance policy holders and the
business relating to life insurance
solicitation;
10. money loans;
11. design, manufacturing, sales and maintenance
of computer hardware and related equipment;
12. design, manufacturing, sales and maintenance
of computer software;
13. the establishment of shopping malls on the
Internet;
14. the electronic commerce business such as the
sale and intermediary business of goods by
using Internet;
15. providing business with contents such as
advertising and providing various information
by using satellites, cable lines and
Internet;
16. travel agency business in accordance with the
Travel Agency Business Law;
17. sales of securities; and
18. any and all other business incidental to the
foregoing.
<PAGE> 22
-18-
(ii) Outline of Business:
The Bidder was established by the Principal
Shareholders to implement the Tender Offer. After the
implementation of the Tender Offer, the Bidder plans to merger
with the Target Company and it will, as the surviving company,
assume and engage in the business of the Target Company.
(3) Amount of Paid-in Capital and Number of Outstanding Shares:
-----------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------- ------------------------------------------------------
Amount of Paid-in Capital Number of Outstanding Shares
- --------------------------------------------------------- ------------------------------------------------------
<S> <C>
\10,000,000 50 shares
- --------------------------------------------------------- ------------------------------------------------------
</TABLE>
(4) Principal Shareholders:
-----------------------
<TABLE>
<CAPTION>
- ----------------------------- ------------------------------------- ------------------------ -------------------
Name Address Number of Shares Owned Holding Ratio
- ----------------------------- ------------------------------------- ------------------------ -------------------
<S> <C> <C> <C>
ALAP Hold Co., Ltd. 7575 Fulton Street East 50 shares 100
Ada, Michigan, U.S.A.
- ----------------------------- ------------------------------------- ------------------------ -------------------
Total 50 shares 100
- ----------------------------- ------------------------------------- ------------------------ -------------------
</TABLE>
<PAGE> 23
-19-
(5) Resumes and Number of Shares Owned by Officers:
-----------------------------------------------
<TABLE>
<CAPTION>
- ---------------------- ------------------------- ------------------------------------------------- -------------
Title Name (Birth Date) Business Career Number of
Shares Owned
- ---------------------- ------------------------- ------------------------------------------------- -------------
<S> <C> <C> <C>
June 1983: Joined the U.S. Labor shares
Department as a contract
specialist
May 1985: Joined North American Van
Lines, Inc. as an
Representative Gary K. Sumihiro International Counsel
Director (October 22, 1956) Aug. 1988: Joined Amway U.S.A. as an
Assistant General Counsel 51
Jan. 1995: Loaned to Target Company as
General Counsel
Nov. 1997: Director of Target Company
(present position)
- ---------------------- ------------------------- ------------------------------------------------- -------------
July 1970: Joined Nihon Tetra Pak K.K.
March 1981: Director and Assistant Chief
of Production for Nihon Tetra
Pak K.K.
Sept. 1984: Director and Chief of
Administration for Nihon
Tetra Pak K.K.
Yoshizo Matsushita Aug. 1989: Joined Target Company as
Director (January 1, 1935) Chief Financial Officer 2,500
Aug. 1990: Director of Finance of Target
Company
Feb. 1994: Director of Administration of
Target Company
April 1994: Director and Vice President
of Target Company (present
position)
- ---------------------- ------------------------- ------------------------------------------------- -------------
</TABLE>
<PAGE> 24
-20-
<TABLE>
<CAPTION>
- ---------------------- ------------------------- ------------------------------------------------- -------------
Title Name (Birth Date) Business Career Number of
Shares Owned
- ---------------------- ------------------------- ------------------------------------------------- -------------
<S> <C> <C> <C>
Feb. 1980: Joined Amway U.S.A.
Sept. 1987: General Manager of Amway
Thailand
Sept. 1991: General Manager of Amway GmbH
Sept. 1993: Director of New Market
Development, Amway U.S.A.
Jan. 1996: Vice President of New Market
Development, Amway U.S.A.
Director James B. Payne March 1996: Vice President of Amway 0
(September 30, 1953) Australia and Amway New
Zealand
Jan. 1997: Senior Vice President of
Amway U.S.A. and Director and
Senior Vice President of AAP
Sept. 1999: Senior Vice President of
Target Company (present
position)
- ---------------------- ------------------------- ------------------------------------------------- -------------
June 1977: Joined Jones, Day, Reavis &
Pogue (law firm)
Jan. 1983: Partner of Jones, Day, Reavis
& Pogue
Oct. 1993: Vice President & General
Statutory Auditor Craig N. Meurlin Counsel of Amway U.S.A. 0
(June 19, 1952) Jan. 1994: Senior Vice President &
General Counsel of Amway
U.S.A. (present position)
Nov. 1994: Statutory Auditor of Target
Company (present position)
- ---------------------- ------------------------- ------------------------------------------------- -------------
</TABLE>
2. FINANCIAL CONDITION
The Bidder is a corporation established on November 1, 1999 and since
not much time has elapsed from the date of its establishment, no financial
statements have been prepared.
<PAGE> 25
-21-
ITEM 3 SHARES OR OTHER SECURITIES OWNED AND TRADED BY BIDDER AND SPECIAL
RELATED PARTIES
1. SHARES OR OTHER SECURITIES OWNED AS OF FILING DATE
(1) Shares or Other Securities Owned by Bidder:
-------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares - - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total - - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned -
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 26
-22-
(2) Shares or Other Securities Owned by Special Related Parties
-----------------------------------------------------------
(in Aggregate):
---------------
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 110,265,272 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights 7,167 shares N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts
(Shares of Common Stock with 1,301 shares N/A -
No Par Value)
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 110,273,740 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 110,273,740 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) (7,167 shares)
- ------------------------------- --------------------------
</TABLE>
<PAGE> 27
-23-
(3) Shares or Other Securities Owned by Each of Special Related
-----------------------------------------------------------
Parties:
--------
Name: Gary K. Sumihiro
Address: (Business Address) 7-1, Udagawacho, Shibuya-ku, Tokyo
Occupation or Business: Representative Director of the
Bidder and Director of the Target
Company
Contact Person: Yoshizo Matsushita
Vice President and Director
Amway Japan Limited
7-1, Udagawacho, Shibuya-ku, Tokyo
Relationship with Bidder: Gary K. Sumihiro is an officer of
the Bidder.
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares - - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights 1,667 shares N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts
(Shares of Common Stock with 51 shares N/A -
No Par Value)
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 1,718 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 1,718 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) (1,667 shares)
- ------------------------------- --------------------------
</TABLE>
<PAGE> 28
-24-
Name: Yoshizo Matsushita
Address: (Business Address) 7-1, Udagawacho, Shibuya-ku, Tokyo
Occupation or Business: Director of the Bidder and Vice
President and Director of the
Target Company
Contact Person: Yoshizo Matsushita
Vice President and Director
Amway Japan Limited
7-1, Udagawacho, Shibuya-ku, Tokyo
Relationship with Bidder: Yoshizo Matsushita is an officer
of the Bidder.
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 2,250 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights 5,500 shares N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts
(Shares of Common Stock with 250 shares N/A -
No Par Value)
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 8,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 8,000 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) (5,500 shares)
- ------------------------------- --------------------------
</TABLE>
<PAGE> 29
-25-
Name: Craig N. Meurlin
Address: (Business Address) 7-1, Udagawacho, Shibuya-ku, Tokyo
Occupation or Business: Statutory Auditor of the Bidder
and Statutory Auditor of the Target
Company
Contact Person: Yoshizo Matsushita
Vice President and Director
Amway Japan Limited
7-1, Udagawacho, Shibuya-ku, Tokyo
Relationship with Bidder: Craig N. Meurlin is an officer of
the Bidder.
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares - - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts
(Shares of Common Stock with 1,000 shares N/A -
No Par Value)
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 1,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 1,000 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 30
-26-
Name: Jay Van Andel Trust
Address: 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, Tokyo
Standing Proxy: Sylphide Associates, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the Bidder and ALAP
(see "3. Material Contracts Relating
to Such Shares or Other Securities"
below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 27,614,300 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts
(Shares of Common Stock with 11 shares N/A -
No Par Value)
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 27,614,311 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 27,614,311 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 31
-27-
Name: Japan H.C.1. Inc.
Address: 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, Tokyo
Standing Proxy: Sylphide Associates, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the Bidder and ALAP (see
"3. Material Contracts Relating to Such
Shares or Other Securities" below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 25,787,300 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 25,787,300 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 25,787,300 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
Name: RDV (AJL) Holdings, Inc.
Address: 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo
Standing Proxy: The Fuji Bank, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the
<PAGE> 32
-28-
Bidder and ALAP (see "3. Material
Contracts Relating to Such Shares or
Other Securities" below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 24,868,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 24,868,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 24,868,000 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 33
-29-
Name: HDV (AJL) Holdings, Inc.
Address: 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo
Standing Proxy: The Fuji Bank, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the Bidder and ALAP
(see "3. Material Contracts Relating
to Such Shares or Other Securities"
below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 20,510,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 20,510,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 20,510,000 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
Name: Richard & Helen DeVos Foundation
Address: 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo
Standing Proxy: The Fuji Bank, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the
<PAGE> 34
-30-
Bidder and ALAP (see "3. Material
Contracts Relating to Such Shares or
Other Securities" below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 2,620,300 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 2,620,300 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 2,620,300 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 35
-31-
Name: RDV GRIT Holdings, Inc.
Address: 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo
Standing Proxy: The Fuji Bank, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the Bidder and ALAP
(see "3. Material Contracts Relating
to Such Shares or Other Securities"
below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 2,396,800 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 2,396,800 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 2,396,800 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
Name: RDV Capital Management L.P. II
Address: 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo
Standing Proxy: The Fuji Bank, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the
<PAGE> 36
-32-
Bidder and ALAP (see "3. Material
Contracts Relating to Such Shares or
Other Securities" below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 2,296,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 2,296,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 2,296,000 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 37
-33-
Name: Jay & Betty Van Andel Foundation
Address: 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, Tokyo
Standing Proxy: Sylphide Associates, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the Bidder and ALAP
(see "3. Material Contracts Relating
to Such Shares or Other Securities"
below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 1,987,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 1,987,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 1,987,000 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
Name: HDV GRIT Holdings, Inc.
Address: 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo
Standing Proxy: The Fuji Bank, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the
<PAGE> 38
-34-
Bidder and ALAP (see "3. Material
Contracts Relating to Such Shares or
Other Securities" below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 1,550,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts
(Shares of Common Stock with 11 shares N/A -
No Par Value)
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 1,550,011 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 1,550,011 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 39
-35-
Name: Van Andel Institute
Address: 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, Tokyo
Standing Proxy: Sylphide Associates, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the Bidder and ALAP
(see "3. Material Contracts Relating
to Such Shares or Other Securities"
below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 536,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 536,000 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 536,000 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 40
-36-
Name: Van Andel Education Institute
Address: 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, Tokyo
Standing Proxy: Sylphide Associates, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the Bidder and ALAP
(see "3. Material Contracts Relating
to Such Shares or Other Securities"
below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 48,700 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 48,700 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 48,700 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
<PAGE> 41
-37-
Name: Van Andel Research Institute
Address: 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, Tokyo
Standing Proxy: Sylphide Associates, Limited
Occupation or Business: Holder of shares of the Target Company
Contact Person: Above stated Standing Proxy
Relationship with Bidder: The special related party has entered
into the Shareholder and Voting
Agreement with the Bidder and ALAP
(see "3. Material Contracts Relating
to Such Shares or Other Securities"
below).
<TABLE>
<CAPTION>
- ------------------------------- -------------------------- -------------------------- --------------------------
Number of Shares as to Number of Securities as
Number Owned Which Voting Power Is to Which Discretionary
Held Power Is Held
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Shares 48,600 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Instruments Evidencing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Securities Representing Stock
Subscription Rights - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Convertible Bonds - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Bonds with Warrants - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Depositary Receipts - N/A -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total 48,600 shares - -
- ------------------------------- -------------------------- -------------------------- --------------------------
Total Number of Securities
Owned 48,600 shares
- ------------------------------- --------------------------
(of Which Number of
Securities Other Than Shares) ( - )
- ------------------------------- --------------------------
</TABLE>
2. TRADING OF SHARES OR OTHER SECURITIES
None.
3. MATERIAL CONTRACTS RELATING TO SUCH SHARES OR OTHER SECURITIES
109,613,022 shares of the Target Company held by the Principal
Shareholders will be, after consummation of this Tender Offer, contributed
gratis as the First Contribution Shares or the Second Contribution Shares to
ALAP or (as the case may be) the Bidder.
<PAGE> 42
-38-
Furthermore, the Principal Shareholders, the Bidder and ALAP have
entered into the Shareholder Agreement, whereby they have agreed not to dispose
of the Contribution Shares and the Purchased Shares and to exercise the voting
rights with respect to the Contribution Shares and the Purchased Shares for
approval of the Merger.
(See "3. Purposes of Tender Offer" under "Item 1 Outline of Tender
Offer" above.)
4. ANY CONTRACT UNDER WHICH SHARES OR OTHER SECURITIES WILL BE PURCHASED
AFTER FILING DATE OF TENDER OFFER STATEMENT
None.
<PAGE> 43
-39-
ITEM 4 TRANSACTIONS BETWEEN BIDDER AND TARGET COMPANY
1. ANY MATERIAL TRANSACTIONS BETWEEN BIDDER AND TARGET COMPANY OR ANY OF
ITS OFFICERS
None.
2. ANY AGREEMENT BETWEEN BIDDER AND TARGET COMPANY OR ANY OF ITS OFFICERS
The Bidder has already obtained the consent from the Target Company
with respect to this Tender Offer.
The Bidder, the Target Company and ALAP have entered into the Tender
Offer Agreement with respect to the consummation and the procedures of this
Tender Offer and the Merger on November 15, 1999. On the same day, the Bidder
and the Target Company have also entered into the Memorandum regarding Merger
(see "3. Purposes of Tender Offer" under "Item 1 Outline of Tender Offer"
above).
<PAGE> 44
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ITEM 5 MATTERS RELATING TO TARGET COMPANY
1. PROFITS AND LOSS, ETC. FOR MOST RECENT THREE YEARS
<TABLE>
<CAPTION>
(in millions of yen)
- ------------------------------- -------------------------- -------------------------- --------------------------
End of Fiscal Year August 1997 August 1998 August 1999
- ------------------------------- -------------------------- -------------------------- --------------------------
<S> <C> <C> <C>
Sales 203,361 192,457 143,797
- ------------------------------- -------------------------- -------------------------- --------------------------
Sales Costs 57,278 62,177 47,737
- ------------------------------- -------------------------- -------------------------- --------------------------
Selling and Administrative 104,463 103,552 75,798
Expenses
- ------------------------------- -------------------------- -------------------------- --------------------------
Non-Operating Income 955 915 1,697
- ------------------------------- -------------------------- -------------------------- --------------------------
Non-Operating Costs 210 434 604
- ------------------------------- -------------------------- -------------------------- --------------------------
Net Profits (Net Losses) 26,638 12,778 10,507
- ------------------------------- -------------------------- -------------------------- --------------------------
Per Share Net Profit (yen) 181.71 88.71 77.96
- ------------------------------- -------------------------- -------------------------- --------------------------
Per Share Dividend (yen) 100 100 100
- ------------------------------- -------------------------- -------------------------- --------------------------
Per Share Net Asset (yen) 439.19 422.69 395.52
- ------------------------------- -------------------------- -------------------------- --------------------------
</TABLE>
(Note) Profits and loss, etc. are based on the annual securities report
of the Target Company filed on November 27, 1997, November 26,
1998 and November 30, 1999.
2. SHARE PRICES
Name of Stock Exchange or Securities Dealers Association on Which Shares Are
Traded:
Japan Securities Dealers Association
<TABLE>
<CAPTION>
(in Yen)
- --------------- ------------- ------------- ------------- ------------ ------------- ------------- -------------
November
Month May June July August September October (Note)
- --------------- ------------- ------------- ------------- ------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Max. Price 1,300 1,310 1,270 1,320 1,230 1,160 1,500
- --------------- ------------- ------------- ------------- ------------ ------------- ------------- -------------
Min. Price 1,090 1,060 1,180 1,190 1,040 1,020 940
- --------------- ------------- ------------- ------------- ------------ ------------- ------------- -------------
</TABLE>
(Note) Up to the date immediately prior to the filing date of this tender
offer registration statement.
<PAGE> 45
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3. SHAREHOLDERS
(1) Shareholders in General:
------------------------
<TABLE>
<CAPTION>
As of August 31, 1999
- ---------------- ------------------------------------------------------------------------------------------- ---------
Distribution of shares (1 unit = 100 shares) Odd-lot
------------ ------------ ----------- ------------- ------------- ------------ ------------ shares
Government/ Foreign
local Financial Securities Other corporations Individuals/ Total
government institutions companies corporations (Individuals) others
- ---------------- ------------ ------------ ----------- ------------- ------------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Number of person 27 25 259 107 17,950 18,369
Shareholders 1 (19)
- ---------------- ------------ ------------ ----------- ------------- ------------- ------------ ------------ ---------
Number Owned unit 14,312 991 18,647 1,248,833 157,461 1,440,253 shares
9 (265) 500
- ---------------- ------------ ------------ ----------- ------------- ------------- ------------ ------------ ---------
Holding Ratio 0.00 0.99 0.07 1.30 86.71 10.93 100.00
(0.01)
- ---------------- ------------ ------------ ----------- ------------- ------------- ------------ ------------ ---------
</TABLE>
(Note 1) Ninety-nine shares of treasury stock are included in the "Odd-lot
shares" classification.
(Note 2) The "Other corporations" and the "Odd-lot shares" classifications
include 226 units and 19 shares in the name of Japan Securities
Depositary Center.
(Note 3) The information is based on the annual securities report of the
Target Company filed on November 30, 1999.
<PAGE> 46
-42-
(2) Shares Owned by Principal Shareholders and Officers:
----------------------------------------------------
(a) Principal Shareholders:
<TABLE>
<CAPTION>
As of August 31, 1999
- -------------------------------------------------------------------------------------------------------------------
Principal Shareholders
- ------------------------------- --------------------------------------------------------- ------------ ------------
Number of
Name Address Shares Holding
Owned Ratio
- ------------------------------- --------------------------------------------------------- ------------ ------------
<S> <C> <C> <C>
thousand
shares %
Jay Van Andel Trust 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, 27,614 19.17
Tokyo 112-0002
Standing Proxy: Sylphide Associates, Limited
- ------------------------------- --------------------------------------------------------- ------------ ------------
Japan H.C.1. Inc. 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, 25,787 17.90
Tokyo 112-0002
Standing Proxy: Sylphide Associates, Limited
- ------------------------------- --------------------------------------------------------- ------------ ------------
RDV (AJL) Holdings, Inc. 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo 103-0026 24,868 17.26
Standing Proxy: The Fuji Bank, Limited,
Kabutocho Custody Business Office
- ------------------------------- --------------------------------------------------------- ------------ ------------
HDV (AJL) Holdings, Inc. 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo 103-0026 20,510 14.24
Standing Proxy: The Fuji Bank, Limited,
Kabutocho Custody Business Office
- ------------------------------- --------------------------------------------------------- ------------ ------------
Moxley and Company 1-3-2, Nihonbashi Hongokucho, Chuo-ku, 8,482 5.88
Tokyo 103-0021
Standing Proxy: The Bank of Tokyo-Mitsubishi, Ltd.,
Securities Custody Department
- ------------------------------- --------------------------------------------------------- ------------ ------------
Richard & Helen DeVos 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo 103-0026 2,620 1.81
Foundation Standing Proxy: The Fuji Bank, Limited,
Kabutocho Custody Business Office
- ------------------------------- --------------------------------------------------------- ------------ ------------
RDV GRIT Holdings, Inc. 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo 103-0026 2,396 1.66
Standing Proxy: The Fuji Bank, Limited,
Kabutocho Custody Business Office
- ------------------------------- --------------------------------------------------------- ------------ ------------
RDV Capital Management L.P. II 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo 103-0026 2,296 1.59
Standing Proxy: The Fuji Bank, Limited,
Kabutocho Custody Business Office
- ------------------------------- --------------------------------------------------------- ------------ ------------
Jay & Betty Van Andel 901, 27-16, Koishikawa 3-chome, Bunkyo-ku, 1,987 1.37
Foundation Tokyo 112-0002
Standing Proxy: Sylphide Associates, Limited
- ------------------------------- --------------------------------------------------------- ------------ ------------
HDV GRIT Holdings, Inc. 6-7, Nihonbashi Kabutocho, Chuo-ku, Tokyo 103-0026 1,550 1.07
Standing Proxy: The Fuji Bank, Limited,
Kabutocho Custody Business Office
- ------------------------------- --------------------------------------------------------- ------------ ------------
Total 118,111 82.00
- ------------------------------- --------------------------------------------------------- ------------ ------------
</TABLE>
<PAGE> 47
-43-
(Note 1) The Target Company's American Depositary Receipts ("ADR") are
listed on the New York Stock Exchange. One American Depositary
Share ("ADS"), which is represented by one ADR, is equivalent to
one-half of one share of non-par value common stock. The
shareholder or record for the ADRs is Moxley and Company.
(Note 2) For the purpose of conducting a delayed secondary offering by the
Jay Van Andel Trust and HDV GRIT Holdings, Inc. (collectively, the
"Sellers"), AJL PEPS Trust, a registered investment company,
offered and sold in November 1995 to the public 15,657,620 Premium
Exchangeable Participating Shares (the "PEPS") at a purchase price
of $19.16 per PEPS. Each of the PEPS was exchanged on February 15,
1999, for 1.25 ADSs according to the terms of PEPS and the related
number of ADSs was delivered to the holders of PEPS. Since each of
the Sellers was the beneficial shareholders of half of such number
of ADSs until the exchange of the PEPS was made, the number of
shares of the Target Company represented by such ADSs was included
in the shareholding of each Seller in the previous Securities
Report. As a result of the above exchange, the number of shares of
each Seller was reduced by that used for exchange in the above
table.
(Note 3) The conditions of principal shareholders are based on the annual
securities report of the Target Company filed on November 30,
1999.
<PAGE> 48
-44-
(b) Officers:
<TABLE>
<CAPTION>
As of November 30, 1999
- -------------------------------------------------------------------------------------------------------------------
Officers
- ------------------------------- --------------------------------------------------------- ------------ ------------
Number of
Name Title Shares Holding
Owned Ratio
- ------------------------------- --------------------------------------------------------- ------------ ------------
<S> <C> <C> <C>
thousand
shares %
Douglas L. DeVos Chairman and Director - -
- ------------------------------- --------------------------------------------------------- ------------ ------------
Richard S. Johnson Vice Chairman and Representative Director 8 0.01
- ------------------------------- --------------------------------------------------------- ------------ ------------
James B. Payne President and Representative Director - -
- ------------------------------- --------------------------------------------------------- ------------ ------------
Takashi Kure Vice President, Chief Planning Officer and Director of 4 -
Logistics, Information Services, Corporate Planing,
Customer Services and Headquarters Building
Construction Project
- ------------------------------- --------------------------------------------------------- ------------ ------------
Yoshizo Matsushita Vice President, Chief Financial Officer and Director of 2 -
Finance & Administration
- ------------------------------- --------------------------------------------------------- ------------ ------------
Masaru Iwata Executive Director of External Affairs and Public - -
Relations
- ------------------------------- --------------------------------------------------------- ------------ ------------
Tomiaki Nagase Director and Chief Advisor 2 -
- ------------------------------- --------------------------------------------------------- ------------ ------------
Gary K. Sumihiro Director, General Counsel and Corporate Secretary - -
- ------------------------------- --------------------------------------------------------- ------------ ------------
Naoto Kira Director of Human Resources - -
- ------------------------------- --------------------------------------------------------- ------------ ------------
Noboru Makino Director - -
- ------------------------------- --------------------------------------------------------- ------------ ------------
Yoshikazu Takaishi Director - -
- ------------------------------- --------------------------------------------------------- ------------ ------------
Koichi Kura Standing Statutory Auditor 5 -
- ------------------------------- --------------------------------------------------------- ------------ ------------
Craig N. Meurlin Statutory Auditor 1 -
- ------------------------------- --------------------------------------------------------- ------------ ------------
James J. Rosloniec Statutory Auditor - -
- ------------------------------- --------------------------------------------------------- ------------ ------------
</TABLE>
(Note 1) The number of shares owned by Yoshizo Matsushita, Gary K.
Sumihiro and James J. Rosloniec include 500, 102 and 1,742 ADRs,
respectively, translated into non-par value common stock of the
Target Company (one ADR is equivalent to one-half of one share of
non-par value common stock of the Target Company). All shares
owned by Craig N. Meurlin is ADRs and stated herein after having
been translated into non-par value common stock of the Target
Company.
(Note 2) Koichi Kura and James J. Rosloniec are Statutory Auditors
appointed from outside the Target Company, as required in Article
18, Paragraph 1, of the Law
<PAGE> 49
-45-
Concerning Special Measures under the Commercial Code with respect
to Audit, etc., of Corporations (kabushiki-kaisha) of Japan.
(Note 3) The information other than the holding ratio is based on the
annual securities report of the Target Company filed on November
30, 1999.
(Note 4) With respect to the holding ratio, fractions after the third
decimal place have been rounded.
4. OTHERS
None.
