[2008-09-16]
Roll out the mobile business in the Middle East and North Africa region through business alliance with Saudi Arabian investment company Basil Holding.
Jointly participate in investments in Japanese information and communications companies.
- Use the opportunity of the business and capital alliance to create new business in the Middle East region, playing to each others strengths.
Index Holdings (Masami Ochiai, President & Representative Director, Head office: Setagaya-ku, Tokyo, hereinafter Index HD) has concluded a business and capital alliance agreement with the Saudi Arabian investment company Basil Investment Holding Co. (CEO: Bassam Al-Dhabaan, Head Office: Riyadh, Saudi Arabia, hereinafter Basil Holding) to provide mobile solutions and services to meet the needs of end consumers and corporate clients in the media and other businesses, and also for joint investments in information and communications companies, centered on the world-leading Japanese mobile industry.
Purpose of the Alliance
Index HD has been expanding its business in the mobile and entertainment field as its main business domain. In the mobile business, in particular, it has accurately captured the latest trends in rapidly evolving technology and has provided solutions and services to meet the needs of end consumers and corporate clients in the media and other business, thereby gaining experience.
Meanwhile, the commercial Third Generation (3G) mobile communication service was launched in Saudi Arabia in 2006, with rapid growth and development expected in associated markets, and similar developments are anticipated in the Middle East region with its large younger population. In particular, in the solution business using mobile phones aimed at media companies, which is an area where the Index Group focuses its resources, there is an opportunity for horizontal deployment in the Middle East and North African market, where multi-channel satellite TV is widespread and the broadcasting media business is active.
Basic Holding is an investment company with a strong local network in the Middle East region, comprised of highly experienced professionals with excellent knowledge and investment track records. Using the joint venture with Basil Holding as the foundation, Index HD intends to make the most of the connections held by Basil Holding to target Middle East media companies, developing strong media partnerships by providing mobile solutions and services, and achieving efficient business operations.
A basic agreement has also been reached for cooperation with regard to investments focused on companies in the information and communications area, with emphasis on the world-leading Japanese mobile industry. It will not only target the creation of profit opportunities from investments, but will increase its involvement in companies with technologies and services that have high added value, with a high level of expertise, to aim for the integrated creation of profit opportunities through business alliances.
In addition, to establish a secure relationship with Basil Holding, the two companies have agreed on a capital alliance as well. With this business and capital alliance, both companies will look towards the creation of new business in the Middle East, playing to each others strengths.
Details of the Business Alliance
Establishment of a Joint Venture Company and Business Outline
Company Name: Index Middle East Limited
Location: Riyadh, The Kingdom of Saudi Arabia
Capital: 5 million Saudi Arabian Rials (approximately 150 million yen)
Shareholding Ratio: Basil Holding 60%, Index HD 40%
Business Territory: Middle East, North Africa
Business Outline:
- Planning, development and provision of solutions and content services for broadcasting media companies, making use of mobile communications.
- Planning, development and provision of marketing solutions making use of mobile communications.
- Planning, development and provision of mobile and e-commerce solutions.
- Planning, development and provision of mobile and Internet payment settlement solutions.
- Entertainment business in general, including the planning, development and provision of digital toys.
Investment Alliance
The companies have agreed to cooperate in the investment business (the establishment of investment funds) targeting the mobile and Internet information and communication industry in Japan. Basil Holding will establish and manage funds targeting mainly investors in Saudi Arabia and the neighboring Arabian Gulf countries, and Index HD will provide the advisory work.
Details of the Capital Alliance
To establish an even stronger relationship of trust, Basil Holding, Mr. Mohammed A. Al-Shaikh (Chairman, Basil Holding, son of the current Minister of Law) and the younger generation businesspeople related to the Saudi Royal Family, who are keenly interested and support this alliance, will acquire shares in Index HD from the market and are expected to maintain ownership based on long-term holdings. Moreover, continued market acquisition is expected in line with the business development of the companies.
Outline of Basil Holding (As of September 16, 2008)
(1) Trade Name: Basil Investment Holding Co.
(2) Representative: Bassam Al-Dhabaan, CEO
(3) Location: 56th Floor, Kingdom Tower,
P.O. Box 54287, Riyadh, 11514,
The Kingdom of Saudi Arabia
(4) Date of Establishment: May 28, 2006
(5) Main Line of Business: Investment
(6) Fiscal Book Closing: December 31
(7) Number of Employees: 10
(8) Capital: 1 million SAR (approximately 30 million yen)
Schedule
September 16, 2008 Resolution by the Management Committee, Conclusion of Business and Capital Alliance agreements.
* Based on this Business Alliance agreement, details for the investment business are expected to be finalized by October 2008.
The Index Group is an extraordinary corporate group that can achieve the creation of new values through the synergy of business using mobile, evolving media and tools as one axis, and the entertainment business of movies, animations and games as the other. Please keep an eye out for future developments.
