Nidec – NJ – To Acquire Shares in Jiangsu Kaiyu Auto Appliance in China
Nidec Corporation (NYSE: NJ) announced that it has agreed to acquire shares in Jiangsu Kaiyu Auto Appliance Co., Ltd., a Chinese company , to be privately issued to the Company in a capital increase transaction, and entered into an agreement for the Transaction with Jiangsu Luokai Mechanical and Electrical Manufacturing Group Co., Ltd. and the other shareholders of Kaiyu. Immediately following the Transaction, the Company is expected to hold a 51% ownership interest in Kaiyu. Details of the Transaction are set forth below.
Purpose of the Transaction
The Company has sought to expand its automotive motor business as one of its pillar businesses not only through organic growth but also by actively pursuing opportunities to acquire companies in the industry.
Kaiyu sells its products to Chinese automobile manufacturers and has strong presence in the Chinese market, which is expected to expand and grow, as a manufacturer of brush motors for electric power steering (“EPS”) systems. Through the Transaction, the Company seeks to acquire technologies for brush motors for EPS systems, which the Company currently does not possess, and business opportunities in the Chinese automobile market, new entry into which has been difficult.
In addition, the Company and Kaiyu will aim to expand sales of brush motors for EPS systems to non-Chinese automobile manufacturers and to emerging economies outside China by mutually taking advantage of each other’s research and development capabilities, manufacturing facilities and sales channels.
Expected Schedule of the Transaction
- First Payment Date (20% of Total Consideration): After obtaining certificate of approval for establishment of enterprise with foreign investment in the PRC (expected in early September 2012)
- Second Payment Date (80% of Total Consideration): Within 3 months of obtaining business license
About Nidec Corporation – NJ
Nidec Corporation (NJ) is a global manufacturer of electric motors, and related components and equipment. The Company has 14 operating segments. NJ is engaged in the manufacture and sale of precious small motors, general motors, equipment, electric and optical components, automobile parts and others. As of March 31, 2011, the Company had 158 subsidiaries and two associated companies. On July 1, 2011, the Company acquired SANYO Seimitsu Co., Ltd. On November 2, 2011, the Company established a wholly owned subsidiary in Shanghai, China. On March 8, 2012, the Company became the top shareholder of NIDEC-READ CORPORATION, with 61.75% voting rights in NIDEC-READ CORPORATION. On June 1, 2012, the Company completed the acquisition of all of the shares in Ansaldo Sistemi Industriali S.p.A.
More Posts by this author
- Gold Prices Edge Lower
- Stocks End on a Mixed Note
- Stocks Marginally Lower after Fed Policy Statement
- Gold Prices Lower ahead of Fed Decision; Silver Prices in Green
- Quest Software – QSFT – Amended its previously announced merger agreement with affiliates of Insight Venture Partners
- Stocks Struggle for Direction Ahead of Fed Decision
- Nidec – NJ – To Acquire Shares in Jiangsu Kaiyu Auto Appliance in China
 |
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
|
