Agreement on Regarding Transfer of the Stepping Motor Business of FDK Corporation to Minebea Co., Ltd.
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Aug 05,2008
Minebea Co., Ltd. (Minebea) and FDK Corporation (FDK) hereby announce the reaching of the Agreement on regarding transfer of the stepping motor business of FDK to Minebea, as described below.
1. Reason for the Agreement
At Minebea, the Company has been making efforts to strengthen its small motor business, in which it can leverage production technologies, such as development of the world's smallest stepping motor, in order to put the business after its ball bearing business that will drive its future growth on the growth path in its mid-term business plan.
At FDK, as in its New Policies and Actions for FDK Group Growth announced on January 31, 2008, regarding its stepping motor business, the Company has been proceeding with measures, such as transferring sales functions to its subsidiary FDK Mechatronics Co., Ltd. (FDK Mechatronics), to more swiftly operate the business as an independent business, while at the same time considering a possible alliance with other companies to strengthen competitiveness and enhance business value.
Against this background, Minebea and FDK have agreed in recognizing that this transfer can maximize synergy effects for both of us, because both companies' motor businesses have few redundant areas and complement each other technologically, reaching the Agreement on regarding transfer of FDK's stepping motor business to Minebea.
FDK has been conducting its stepping motor business by leveraging its technological edge in the field of small-sized motors, but in order to further grow the business, the Company has come to the conclusion that it is most appropriate for it to transfer the business to Minebea. Based upon the Agreement, Minebea will acquire FDK Mechatronics, FDK (THAILAND) CO., LTD. (FDK THAILAND) and the stepping motor business of Xiamen FDK Corporation (Xiamen FDK). At the same time, Minebea will take over the employees, relevant intellectual property rights, etc. involved in the stepping motor business at the FDK Group, thereby strengthening its motor business.
2.Profile of the Business to Be Transferred
(1) Profile of the business
The stepping motor business of FDK subsidiaries, FDK Mechatronics, FDK THAILAND and Xiamen FDK
(2) Outline of the subsidiaries to be transferred (As of March 31, 2008)
(Note) Regarding Xiamen FDK, its stepping motor business is subject to this transfer.
(3) Performance of the business
Consolidated net sales 7,323 million yen (Fiscal year ended March 31, 2008)
(4) Schedule
July 31, 2008: Approval of Agreement at Board meeting
July 31, 2008: Conclusion of Agreement
October 31, 2008 (Planned): Conclusion of final agreement
3.Outline of Minebea
4. Outline of FDK
5.Outlook for the Future (1) Minebea and FDK will proceed with discussions toward concluding a final agreement in late October 2008. If both companies have reached a final agreement on this transfer of the business, timely disclosure will be made at such time.
(2) This transfer's effects on consolidated results of both companies will be noticed as soon as they are available.
(Note) Regarding Xiamen FDK, its stepping motor business is subject to this transfer.
(3) Performance of the business
Consolidated net sales 7,323 million yen (Fiscal year ended March 31, 2008)
(4) Schedule
July 31, 2008: Approval of Agreement at Board meeting
July 31, 2008: Conclusion of Agreement
October 31, 2008 (Planned): Conclusion of final agreement
3.Outline of Minebea
4. Outline of FDK
5.Outlook for the Future (1) Minebea and FDK will proceed with discussions toward concluding a final agreement in late October 2008. If both companies have reached a final agreement on this transfer of the business, timely disclosure will be made at such time.
(2) This transfer's effects on consolidated results of both companies will be noticed as soon as they are available.
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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