1. Reasons for Acquisition of the Assets To enhance TDK's ability to compete internationally by improving the efficiency of its operations and enabling TDK to offer enhanced technologies in its HDD head business. 2. Assets Purchased Assets and Location, etc. Purchase Price Equipment/Certain equipment located at Alps JPY36,150 million factories in Japan (Incl. tax, etc.) (Nagaoka, Niigata Prefecture) and China (Wuxi, Jiangsu; and Ningbo, Zhejiang) Intellectual property/ patents and know-how, etc. 3. Overview of Seller Company Alps Electric Co., Ltd. Headquarters 1-7, Yukigaya-otsuka-cho, Ota-ku, Tokyo, Japan Representative Masataka Kataoka, President Paid-in Capital JPY23,623 million (As of March 31, 2007) Principal Japan Trustee Services Bank, Ltd. (Trust account) 6.82% Stockholders The Master Trust Bank of Japan, Ltd. (Trust account) 5.76% Mitsui Sumitomo Insurance Company, Limited 2.30% Mitsui Life Insurance Company Limited 1.97% Nippon Life Insurance Company 1.90% (As of March 31, 2007) Main business Manufacture and sale of electronic components, audio products, etc. Relationship The companies are unrelated in terms of capital or with TDK human resources (including secondments of employees or cross-directorships). TDK sells electronic components (excluding HDD heads) to Alps. -more- 4. Acquisition Schedule September 26, 2007 Board of Directors' resolution, conclusion of agreement End of February 2008 Planned completion of the transfer 5. Effect on Operating Results The purchase of these assets is expected to have an immaterial effect on TDK's operating results for the current fiscal year. # # # This information is provided by RNS The company news service from the London Stock Exchange
TDK Corporation - Acquisition of HDD Head Asset
| Source: TDK Corporation
Tokyo, Japan--(Marketwire - September 26, 2007) -
TOKYO JAPAN, September 26, 2007 ----- TDK Corporation (TDK) announced that today
it concluded an agreement with Alps Electric Co., Ltd. (Alps) regarding the
transfer of Alps' equipment and intellectual property rights such as patents
and know-how concerning its HDD head business. The agreement was approved by
both companies' boards of directors and is the culmination of negotiations
following a basic agreement concluded on March 15th this year. The content of
the agreement signed today is summarized below.