KYOTO, Japan, Nov. 29, 2006 (PRIME NEWSWIRE) -- Nidec Corporation (the "Company") (NYSE:NJ) announced today that its Board of Directors has resolved to acquire 466,133,000 shares of common stock and subscription rights for 150,000 new shares in Brilliant Manufacturing Limited ("Brilliant" or "Offeree") in Singapore by way of tender offer (the "Tender Offer"). A separate announcement associated with this Tender Offer is also planned in Singapore today pursuant to the nation's relevant regulations. This Tender Offer has been also approved by the Board of Directors of Brilliant today and supported by its founding family, Brilliant's largest shareholder due to tender 247,192,000 shares, or 53.03%, of Brilliant's total outstanding shares in this Tender Offer. Upon completion of the Tender Offer, Brilliant is expected to become a consolidated subsidiary of the Company.
The Company believes that the acquisition of Brilliant, which manufactures base plates and top covers for hard disk drives, will help strengthen the Company's flagship hard-disk-drive motor business for the following reasons:
(a) Brilliant's competitive expertise in mould design, die casting,
electroplating, precision machining and pressing will greatly
enhance the Company's in-house capability to manufacture
hard-disk-drive base plates. The benefit of incorporating die
casting capacity will be particularly significant in terms of
eliminating a traditional supply bottleneck and further integrating
the Company's hard-disk-drive motor production.
(b) Brilliant's established manufacturing presence in Singapore,
Indonesia, Thailand and China, will effectively increase the
Company's overall supply capacity by complementing the Company's
existing production network in these regions.
Full copy of the press release: http://www.nidec.co.jp/english/ir/indexdata_e/2006/1129.pdf
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