KYOTO, Japan, March 12, 2007 (PRIME NEWSWIRE) -- Nidec Corporation ("Nidec" or "Offeror") (NYSE:NJ) announced today that it resolved at a meeting of the Board of Directors held on March 13, 2007 to acquire 18,202,000 shares, or, 51.77% of common stock in Japan Servo Co., Ltd. ("Japan Servo" or "Target Company") (Tokyo Stock Exchange Second Section: 6585,) for 4,733 million Japanese yen by way of tender offer (the "Tender Offer"). The Tender Offer was also approved by the Board of Directors of Japan Servo on the same day. Hitachi, Ltd., the parent company of Japan Servo, will tender 16,585,000 shares, or 46.47%, of Japan Servo's total outstanding shares in this Tender Offer. Upon completion of the Tender Offer, Japan Servo is expected to become a consolidated subsidiary of Nidec.
This Tender Offer is intended to achieve an optimal blend of the technological expertise and production scale that the two companies have developed to date, particularly in the field of small precision motors.
Japan Servo has long been engaged in the manufacture and sale of small motors and motor applied products as a subsidiary of Hitachi, Ltd, a leading global electronics company. Since it gained ground in 1951 as Japan's first manufacturer of servo motors, Japan Servo has expanded its market presence with diverse product portfolio, including stepping motors, brushless DC motors, fans and blowers used in office equipment, industrial machinery, home electric appliances and computers.
In recent years, Japan Servo's priority has been on revamping its business base in ways that concentrate management resources on selected market areas where Japan Servo's core competence in digital engineering would better work to enhance productivity and quality control. However, amid today's increasingly competitive market environment, Japan Servo is facing serious difficulty in addressing competitive challenges mainly deriving from limited economies of scale in production achievable within the existing business structure.
Nidec, as the world's leading manufacturer of brushless motors, has been taking measures to have internal and external growth effectively interacted with each other for the long term. In line with this objective, through the Tender Offer Nidec expects to enrich its product portfolio and utilize its unmatched producing and marketing capacity for the creation of far-reaching synergies with Japan Servo's motor businesses.
Full copy of the press release: http://www.nidec.co.jp/english/ir/indexdata_e/2007/0313.pdf
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