"Narita, Japan, airport won't pay dividend for first year"

Thursday, June 24, 2004

Narita, Japan, airport won't pay dividend for first year
Japan - Kyodo News


NARITA, Japan -- Narita International Airport Corp. said Thursday it
will not pay a dividend for fiscal 2004, its first business year after
becoming a stock company.

Narita International Airport President Masahiko Kurono told reporters
that the move is intended to increase the price of its shares in the
run-up to a planned listing three years from now by using profits to
bolster the business strength of the company, the operator of Narita
airport.

By raising the company's capital adequacy ratio from the current 15
percent and through other measures, more gains on sale of its shares are
expected at the time of listing, Kurono said.

"Thus, our shareholders may not suffer a complete loss" from the absence
of dividend payments, he said.

Formerly known as the New Tokyo International Airport Authority, Narita
International Airport became a stock company on April 1 as the first
step toward full privatization.

Although the shares of the corporation, with a capital of 100 billion
yen, are entirely held by the government at present, it plans to make
its debut on the Tokyo Stock Exchange, possibly in fiscal 2007, after
striving to secure a greater competitive edge over other Japanese
airports.

The company posted revenues of some 13.3 billion yen in April and 13.4
billion yen in May, each some 4 percent more than its targets, company
officials said.


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