US retail giant Wal-Mart has said it foresees a need to inject capital into its Japanese affiliate Seiyu in the near future.
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“We are looking at the current equity situation within the company and do believe we need to address that in the near term,” Jeff McAllister, Wal-Mart’s chief operating officer for Japan, was quoted by Reuters as saying.
McAllister’s comments came in response to recent Japanese media reports that the company plans to inject several billion yen of capital into Seiyu, which has around 400 stores in Japan.
Wal-Mart owns a 37.8% stake in Seiyu, and has an option to increase this to 51% by December 2005 and 67% by December 2007.
“If Wal-Mart exercises its option to lift the stake in December next year and makes us a subsidiary, I think we will be able to grow further,” Seiyu president Masao Kiuchi was quoted by Reuters as saying.
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