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TDK to Purchase Shares of Magnecomp Precision Technology Public Company Limited, Make a Subsidiary

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TDK to Purchase Shares of Magnecomp Precision Technology Public Company Limited, Make a Subsidiary

http://www.global.tdk.com/news_center/pressTDK Press Release

August 29, 2007

TDK Corporation has announced that the Board of Directors on August 29, 2007 passed a resolution to purchase 74.3% of the issued shares of Thailand-based Magnecomp Precision Technology Public Company Limited (MPT) from Singapore company Magnecomp International Limited. TDK has signed a sale and purchase agreement for these shares with Magnecomp International, as outlined below. The purchase price of the shares is US$123 million (approximately ¥14.2 billion). This transaction will make MPT a TDK Group subsidiary.

  1. Reason for Purchasing Shares
    TDK believes that by making MPT a subsidiary it will help the Company to strengthen the competitiveness of its HDD magnetic heads business, one of the mainstays of TDK's recording devices segment. MPT boasts technological strengths and expertise in the design and manufacture of suspension assemblies, a key component of HDD magnetic heads.
  2. Overview of MPT
    (1) Company Magnecomp Precision Technology Public Company Limited
    (2) Representative Mr. Steven Glenn Campbell (CEO)
    (3) Location 162 Moo 5, Phaholyothin Road T.Lamsai, A.Wangnoi, Ayutthaya, 13170, Thailand
    (4) Established June 1991
    (5) Main businesses Design, manufacture and sale of suspension assemblies for HDD magnetic heads
    (6) Consolidated subsidiaries 6
    (7) Fiscal year-end December
    (8) No. of employees 7,664 (as of December 31, 2006, consolidated)
    (9) Main business sites Thailand, China
    (10) Paid-in capital 6,254,585,364 baht (approx. ¥22.0 billion)
    (11) Total issued shares 2,084,861,788; listed on The Stock Exchange of Thailand
    (12) Principal shareholders and shareholdings
    Shareholder Shareholding
    Magnecomp International Limited 74.3 %
    Somers(UK)Limited 12.37 %
    (13) Operating Results in Most Recent Fiscal Years (Consolidated)
    (Million baht)
      Year ended Dec. 31, 2006 Year ended Dec. 31, 2005
    Net sales 9,592 (¥32,709 million) 9,459 (¥27,147 million)
    Operating income (737)(-¥2,513million) 720(¥2,067million)
    Net income (898) (-¥3,062 million) 553 (¥1,587 million)
    Total assets 8,770 (¥29,906 million) 9,259 (¥26,573 million)
    Net assets 3,640 (¥12,412 million) 4,870 (¥13,977 million)
    Notes:
    1. Currency conversions use the rate as of December 31 in each fiscal year.
    2. Average net income for the 5 most recent fiscal years to the year ended December 31, 2006 was 110.8 million baht (¥318 million).
  3. Seller of Shares
    (1) Company Magnecomp International Limited
    (2) Representative Mr. Steven Glenn Campbell (CEO)
    (3) Head office 1 Finlayson Green, #15-02, Singapore 049246
    (4) Consolidated net sales   S$721.6 million (year ended December 31, 2006)
    (5) No. of employees 15,375 (as of December 31, 2006; consolidated)
    (6) Main businesses Design, manufacture and sale of HDD magnetic head suspension assemblies, precision stamped components and metal stamping dies
    (7) Relationship to TDK There are no capital relationships and a human relationship. Business relationships are slight.
  4. No. of Shares to Be Purchased, Purchase Price and Shareholding Before and After Purchase
    (1) No. of shares held before purchase    0 shares (Shareholding: 0.0%)
    (2) No. of shares to be purchased 1,549,550,802 shares
    (Purchase price: US$123 million)
    (approx. ¥14.2 billion)
    (3) No. of shares held after purchase 1,549,550,802 shares
    (Shareholding: 74.3%)
  5. Expected Schedule
    December 2007    Planned acquisition of stock certificates
    (64.3% of issued shares)
    June 2009 Planned acquisition of stock certificates
    (10.0% of issued shares)
  6. Effect on Operating Results
    The acquisition of these shares will have an immaterial effect on TDK's operating results.

For further information, contact the Corporate Communications Dept.
Tel.: 81-36778-1055
E-mail: TDK.PR@tdk.com