Minebea Co., Ltd.
Notice of a Basic Agreement Regarding Minebea's Share Purchases of Moatech
Minebea Co., Ltd. ("Minebea") hereby announces that on March, 23, 2012, its Board of Directors has reached an agreement with Moatech Co, Ltd. ("Moatech") and its principal shareholders to purchase the majority of shares of Moatech, through the subscription of new shares via third-party allotment, and the purchase of treasury shares and shares held by the principal shareholders of Moatech.
1. Purpose of Share Purchases
With a view toward expanding its small-sized precision motor business, which is one of its major product lines, as well as strengthening the competitiveness of such business in the global market, Minebea has reached an agreement in principal to acquire a majority stake in Moatech, through the subscription of new shares to be issued by Moatech to Minebea via third-party allotment, and the purchase of treasury shares as well as shares owned by Mr. Jong Kwan Lim, Moatech's CEO. Minebea plans to acquire 50.8% stake in Moatech shares, subsequent to going through a variety of approval processes from respective government authorities.
Established in 1989 in Korea, Moatech has its shares listed in KOSDAQ (Korean Securities Dealers Automated Quotations). Moatech retain an affiliate company called Hysonic Co., Ltd, a manufacturer of small-sized precision motors, whose shares are also listed in KOSDAQ. In addition, Moatech has its production facilities located in Korea, China and the Philippines and has established an efficient system stretching from the development and design stages to the manufacturing processes in the small-sized motor businesses, which provides Moatech with a high level of competitiveness in quality, production capability and manufacturing costs. In the segment of stepping motors to be used for IT devices, which is one of its major product lines, Moatech retains a high market share in the global market. The company also strives to expand into the motor businesses to be used for automobiles, office equipments, home electronic appliances, and cameras, in which small-sized precision motors are expected to increase its sales significantly in the years to come. As such, Moatech is expected to secure its place in the global marketplace going forward.
Minebea, on the other hand, is determined to enhance its product development capability, establish streamlined process of manufacturing and sales, and expand its sales of small-sized precision motors, by acting in coordination with and complementing the activities of Moatech, one of the leading Korean manufacturer in this business. Minebea also strives to achieve steady and consistent growth and profitability by way of taking advantage of the market expansion of precision motor businesses including supplies to the automobile markets in which the shift to and proliferation of electric cars (Electronic Vehicles) are widely expected in the near future.
2. Outline of Minebea Co., Ltd.
|(1) Name||Minebea Co., Ltd.|
|(2) Location||4106-73, Oaza Miyota, Miyota-machi, Kitasaku-gun, Nagano, Japan|
|(3) Representative||Yoshihisa Kainuma|
|(4) Established||July 1951|
|(5) Capital||JPY68,258 million (Year ended March 31, 2011)|
|(6) Number of employee||53,827 (consolidated)|
|(7) Principal business||Machined components, rotary components, and electronic devices and components|
|(8) Major Shareholders
(As of September 30, 2011)
|(9) Net assets||JPY109,967 million (consolidated, Year ended March 31, 2011)|
|(10) Total assets||JPY291,092 million (consolidated, Year ended March 31, 2011)|
|(11) Net sale||JPY269,139 million (consolidated, Year ended March 31, 2011)|
|(12) Financial closing||March|
|(13) Relationships with Moatech||None on capital relationships, personnel relationships, others|
3. Outline of Moatech Co., Ltd.
|(1) Name||Moatech Co., Ltd.|
|(2) Location||292 Guwol-Dong, Namdong-gu, Incheon-City, Korea|
|(3) Representative||Jong Kwan Lim (CEO)|
|(4) Established||March 1989|
|(5) Capital||KRW7.2 billion (JPY520 million*) (Year ended December 31, 2011)|
|(6) Number of employee||5,033 (consolidated)|
|(7) Principal business||Small-sized precision motors for use in the IT devices, automobiles, office equipments, home electronic appliances and cameras|
|(8) Locations of major production facilities||Korea, China, Philippines|
|(9) % of investment by Minebea (as planned)||50.8%|
|(10) Relationships with Minebea||None on capital relationships, personnel relationships, others|
*Exchange Rate: KRW1.00=JPY0.0721
4. Future Outlook
Minebea plans to complete a series of stock purchase transactions as soon as practically possible, subsequent to obtaining required permits and approvals from the respective government authorities. We do not predict any direct impact of these transactions on the consolidated earnings for the fiscal year ending March 31, 2012.
|Company Name:||Minebea Co., Ltd.|
President and Chief Executive Officer
(Code No. 6479, TSE Div. No.1)
Corporate Communications Office
Product information, contact and other context are subject to change without prior notice.