We made the announcement on March 23, 2012 that Minebea Co., Ltd. ("Minebea") had reached a basic agreement with Moatech Co, Ltd. ("Moatech") to purchase the majority of shares of Moatech. We hereby announce that Minebea has successfully completed the purchase of the majority (50.8%) of the total number of issued shares of Moatech from Moatech and its principal shareholders as of May 31, 2012.
1. Purpose of Share Purchases
Minebea has acquired the majority shares of Moatech 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.
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 (Plug-in Hybrid Vehicles(PHV) and Electronic Vehicles(EV)) are widely expected in the near future.
2. Total Acquisition Price
The parties concluded the total acquisition price of such share purchases for 59.5 billion Korean Won (KRW).
3. Outline of Moatech Co., Ltd.
4. Future Outlook
All the expected impacts on the consolidated earnings for the fiscal year ending March 31, 2013, resulting from the share purchases described above have been incorporated in the "Prospect for the Next Fiscal Year (April 1, 2012 through March 31, 2013)", which was included in the "Brief Report of Financial Results (under Japanese GAAP) (Consolidated) for the Year Ended March 31, 2012."
Company Name: Minebea Co., Ltd.
Representative: Yoshihisa Kainuma
Representative Director,
President and Chief Executive Officer
(Code No. 6479, TSE Div. No.1)
Contact: Yasuo Komine
General Manager
Corporate Communications Office
Tel: +81-(0)3-5434-8643
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