Tokyo, Japan -- (MARKET WIRE) -- February 21, 2007 --
For Immediate Release
Contact in TDK:
Nobuyuki Koike
TDK Corporation
Corporate Communications Dept.
Tel: (81)-3-5201-7102
E-mail; pr@mb1.tdk.co.jp
Contact in Tabuchi Electric :
Masao Sasano
Tabuchi Electric Co., Ltd.
Corporate Director and Joint General Manager, Group Headquarters
Tel: (81)-6-4807-3500
TDK and Tabuchi Electric Agree to Equity-based Business Alliance
TOKYO & OSAKA JAPAN, February 21, 2007,--TDK Corporation (TDK) and Tabuchi
Electric Co., Ltd. (Tabuchi Electric) have announced that their respective
boards of directors today passed resolutions to conclude a Memorandum of
Understanding (MOU) regarding an equity-based business alliance to strengthen
their cooperative relationship in the two companies' businesses. Based on this
agreement, Tabuchi Electric will issue new shares to TDK via a private
placement.
1. Background and Aim of the Equity-based Business Alliance
(1)Background
The digital home appliances field is an important market for the evolution and
expansion of the world electronics industry. It is a field that is advancing on
a daily basis in terms of both size and technological developments. In this
context, power supplies are increasingly under the spotlight as key devices for
digital home appliances, enhancing the value of finished products from such
perspectives as helping save energy, conserving resources, and protecting the
environment. While this market is expected to expand going forward, the business
environment is also expected to become increasingly challenging in regards to
the development of new products and the need to reduce costs.
(2)Aim of the Alliance
The TDK Group is a leading company in passive components such as magnetic
products, including ferrite cores which are key components of power supplies,
ceramic capacitors and EMC (Electromagnetic Compatibility) components, and the
top manufacturer of power supplies for industrial equipment. Meanwhile, Tabuchi
Electric is one of the industry's leading suppliers of custom power supplies
for consumer electronics, excelling in high-voltage, high-frequency transformer
technology. Through a technology-centered business alliance, both companies
believe that they can increase their corporate value and be better able to
supply customers with value-added products on a timely basis.
2. Outline of the Alliance
The two companies will:
(1)cooperate in design, development, production and materials procurement
to promote both companies' businesses in the field of custom power supplies
for consumer electronics,
(2)make effective use of each other's products as well as exchange
information regarding materials and purchasing, and
(3)conduct regular technology exchanges in the field of power
supply-related components to effectively utilize the results of each other's
research for the commercialization of products and other ends.
3. Details of the Equity-based Alliance (Issue of New Shares Via Private
Placement)
(1) No. of new shares to be issued: 5,000,000 shares of common stock
(2) Issue price: JPY162 per share
(3) Total purchase price: JPY810,000,000
(4) Amount to be included in common stock: JPY81 per share
(5) Application date: March 7, 2007 (Wednesday)
(6) Payment date: March 8, 2007 (Thursday)
(7) Share certificate issue date: March 8, 2007 (Thursday)
(8) Allottee and number of shares: TDK Corporation (5,000,000 shares)
4. Profiles of the Two Companies
TDK Corporation
(1) Main businesses: Manufacture and sales of electronic materials and
components and recording media products
(2) Head office: 1-13-1, Nihonbashi, Chuo-ku, Tokyo
(3) Representative: Takehiro Kamigama, President and COO
(4) Common stock: JPY32,641,976 thousand
(5) No. of employees: 53,975 (Consolidated, as of September 30, 2006)
Tabuchi Electric Co., Ltd.
(1) Main businesses: Manufacture and sales of power supply units, transformers,
inverters and other products
(2) Head office: 4-2-21, Miyahara, Yodogawa-ku, Osaka-shi, Osaka
(3) Representative: Toshihiro Kaihoshi, President
(4) Common stock: JPY2,790,816 thousand
(5) No. of employees: 4,240 (Consolidated, as of September 30, 2006)
5. Impact on Both Companies' Operating Results
The impact on the consolidated net sales and consolidated net income of both
companies after the conclusion of this MOU will be negligible.
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This information is provided by RNS
The company news service from the London Stock Exchange