Minebea Co., Ltd. ("Minebea") hereby announces that a decision has been reached at a board of directors meeting on May 9, 2013 to form a business and capital alliance with KJ Pretech Co., Ltd. of Korea ("KJP"), a manufacturer and distributor of backlight units for LCD's, precision plastic molding parts, and molds and dies and that Minebea and KJP have entered into the agreements associated with such business and capital alliance.
1. Purpose of business and capital alliance
Minebea strives to expand a backlight business for small- to medium-sized LCD's to be used for smart phones and cellular phones, etc., which is one of its major product lines, as well as to strengthen its competitive edge in the global marketplace, and therefore, has decided to enter into agreements with KJP for the purpose of forging strategic alliances with the company.
KJP was established in 1994 in Korea with its shares listed in the Korean Securities Dealers Automated Quotations (KOSDAQ). KJP has manufacturing facilities located at Yantai in Shandong province and Huizou in Guandong province of China and as for the manufacture of backlights for LCD's, KJP has automation capabilities and expertise enabling the company to manufacture high-quality products as well as advanced mold and die technologies, which would give it significant competitiveness in terms of superior quality, technological prowess and supply capabilities.
Minebea intends to build a solid relationship with KJP through this business and capital alliance with one of the leading manufacturers of backlights for LCD's with a view to enhancing its competitive edge by way of improving its product quality, technological expertise and supply capabilities as well as solidifying the position as a market leader in the backlight business where the competition has been even more intensifying. By so doing, Minebea's future business development and improved profitability would be ensured.
2. Outline of the business and capital alliance
Minebea plans to form a business alliance with KJP in the field of production outsourcing, technical assistance and cooperation, supply agreements of molds and dies and the purchasing of parts and components. In addition, Minebea is slated for the acquisition of new shares of KJP through a third-party allotment of new stocks and therefore tie-up with KJP in equity capital. KJP in turn will acquire shares of Minebea in the future.
3. Outline of KJP
(1) Corporate name KJ Pretech Co., Ltd.
(2) Location 594-1 Panwol-ri, Taean-eup, Hwaseong-si, Kyunggi-do, Korea
(3) Representative Hong Jun Ki (CEO)
(4) Established October 1994
(5) Capital KRW 7 billion (620 million yen*) (Year ended December 31, 2012)
(6) Number of employee 1,100 (consolidated)
(7) Principal lines of business Manufacture and sales of backlight units for LCD's, precision plastic molding parts, and molds and dies
(8) Location of major production facilities China (Yantai in Shandong province and Huizou in Guandong province)
(9) Relationships with Minebea Capital relationships, personnel relationships, etc.: None
*Exchange Rate: KRW1.00=JPY0.0889
4. Schedule
Resolution of the Board of Directors May 9, 2013
Conclusion of the business alliance agreement May 9, 2013
Conclusion of the share subscription agreement May 9, 2013
5. Future outlook
We expect that the impact of the said business and capital alliance on Minebea's operating results for the fiscal year ending March 31, 2014 will be minor on a consolidated basis.
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)3-6758-6703
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