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Notice Concerning Acquisition of HDD Head-related Assets From Alps
September 26, 2007
TDK Corporation (TDK) announced that today it concluded an agreement with Alps Electric Co., Ltd. (Alps) regarding the transfer of Alps' equipment and intellectual property rights such as patents and know-how concerning its HDD head business. The agreement was approved by both companies' boards of directors and is the culmination of negotiations following a basic agreement concluded on March 15th this year. The content of the agreement signed today is summarized below.
- Reasons for Acquisition of the Assets
To enhance TDK's ability to compete internationally by improving the efficiency of its operations and enabling TDK to offer enhanced technologies in its HDD head business.
- Assets Purchased
Assets and Location, etc. Purchase Price Equipment / Certain equipment located at Alps factories in Japan (Nagaoka, Niigata Prefecture) and China (Wuxi, Jiangsu; and Ningbo, Zhejiang) Intellectual property / patents and know-how, etc. ¥36,150 million
(Incl. tax, etc.)
- Overview of Seller
Company Alps Electric Co., Ltd. Headquarters 1-7, Yukigaya-otsuka-cho, Ota-ku, Tokyo, Japan Representative Masataka Kataoka, President Paid-in Capital ¥23,623 million (As of March 31, 2007) Principal Stockholders Japan Trustee Services Bank, Ltd. (Trust account) 6.82% The Master Trust Bank of Japan, Ltd. (Trust account) 5.76% Mitsui Sumitomo Insurance Company, Limited 2.30% Mitsui Life Insurance Company Limited 1.97% Nippon Life Insurance Company 1.90% (As of March 31, 2007) Main business Manufacture and sale of electronic components, audio products, etc. Relationship with TDK The companies are unrelated in terms of capital or human resources (including secondments of employees or cross-directorships). TDK sells electronic components (excluding HDD heads) to Alps.
- Acquisition Schedule
September 26, 2007 Board of Directors' resolution, conclusion of agreement End of February 2008 Planned completion of the transfer
- Effect on Operating Results
The purchase of these assets is expected to have an immaterial effect on TDK's operating results for the current fiscal year.
For further information, contact the Corporate Communications Dept.