KYOTO, Japan, Feb. 7, 2010 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) ("Nidec") today announced that its consolidated subsidiary, Nidec Electronics (Thailand) Co., Ltd. ("NET"), has agreed with Salee Industry Public Company Limited in Thailand ("Salee") to acquire the shares of SC WADO Co., Ltd. ("SC WADO"), a manufacturer of base plates, that Salee owns, representing 75% of the outstanding shares of SC WADO, for THB 72 million (approximately JY 190 million), and entered into a share purchase agreement with Salee on February 8, 2010.
1. Purpose of Transaction
Through this transaction, Nidec intends to secure a steady supply of base plates, which are a major component of spindle motors, to meet the increasing demand for spindle motors for hard disc drives ("HDDs") and to enhance the production capacity of its group companies in an effort to improve Nidec's overall profit structure. NET currently purchases from SC WADO 600,000 base plates for 3.5-inch HDDs and 300,000 base plates for 2.5-inch HDDs on a monthly basis.
2. Information on SC WADO
| (1) Company Name: | SC WADO Co., Ltd. |
| (2) Headquarters: | 362-363 Moo 6, Yuthasart 331 Rd. (at Km 91-92), Borwin Sriracha, Cholburi, Thailand |
| (3) Location: | Pingthong, Cholburi, Thailand |
| (4) Business Description: | Die-casting/manufacturing of base plates for HDDs and hub manufacturing of spindle motors |
| (5) Employees: | 320 |
| (6) Recent Financial Information (provided by Salee): | |||
| (Million THB) | |||
|
Fiscal Year ended December 31, 2007 |
Fiscal Year ended December 31, 2008 |
Nine Months ended September 30, 2009 |
|
| Net sales | 247 | 351 | 254 |
| Net income (losses) | (66) | (18) | 19* |
| Total assets | 347 | 313 | 360 |
| Total liabilities | 298 | 281 | 310 |
| Total equity | 49 | 32 | 51 |
| *Includes net gains on sales of assets (THB 11 million). | |||
|
(7) Information on Salee: |
|
| Headquarters: | 18 Moo 10 Tumbol Klong Si, Amphur Klong Luang, Pathumthani Province 12120, Thailand |
| Established: | January 1993 |
| Business Description: | Plastic injection and vacuum forming |
| Main Products: | Plastics for computer parts |
| Location: | Pathumthani, Bangkok (Thailand) |
| Net sales: | THB 928.55 million (for the fiscal year ended December 31, 2008); THB 655.84 million (for the nine months ended September 30, 2009) |
| Total Equity: | THB 239.82 million (as of September 30, 2009) |
3. Transaction Structure
SC WADO is expected to become a subsidiary of NET as a result of NET's acquisition of 75% of the shares of SC WADO. NET intends to acquire additional shares from other shareholders to increase its shareholding in SC WADO to 90%.
Immediately after NET's acquisition of the shares of SC WADO from Salee and other shareholders, it is expected that the current management will continue to hold the remaining 10% of the shares. NET intends to commence discussions with the current management regarding its purchase of the remaining SC WADO shares in the future.
4. Schedule
The closing of the transaction is expected to be completed on or prior to the end of February, 2010.
5. Effect on Financial Performance for the Current Fiscal Year
The impact of NET's acquisition of the SC WADO shares on Nidec's consolidated financial performance for the current fiscal year is expected to be immaterial.
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Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or current expectations of Nidec or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, the anticipated benefits of the planned transaction not being realized, shifts in technology, and changes in economic environments. Nidec does not undertake any obligation to update the forward-looking statements contained herein, nor to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.