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Yamaha to Sell Shares of Electronic Metals Subsidiary |
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| The Board of Directors of Yamaha Corporation (Head Office: 10-1, Nakazawa-cho, Hamamatsu-shi, Shizuoka; President: Shuji Ito; Hereinafter: Yamaha) made the decision at their meeting held on March 20, 2007, to sell 90.0% of the issued shares of Yamaha subsidiary Yamaha Metanix Corporation (Head Office: Shingai 2630, Iwata-shi, Shizuoka; President: Akifumi Inoue; Hereinafter: Yamaha Metanix) to Dowa Metaltech Co., Ltd. (4-14-1, Soto Kanda, Chiyoda-ku, Tokyo; President: Yukio Ishibashi; Hereinafter: Dowa Metaltech). As Yamaha, Dowa Holdings Co.,Ltd. (Parent company of Dowa Metaltech, Head Office:4-14-1, Soto Kanda Chiyoda-ku, Tokyo; President: Masaki Kohno; Hereinafter Dowa Holdings) and Dowa Metaltech have reached basic agreement on the transfer of the shares, the details are as follows. The transfer is scheduled to take place by September 30, 2007. |
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| 1. Reason for the Transfer of the Shares |
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| Yamaha Metanix is a wholly owned subsidiary of Yamaha that was established in 1991 when the engineering and manufacturing division of Yamaha’s Electronics Equipment and Metal Products segment was transferred into a separate company. In 1998, the sales and administration division of the Electronics Equipment and Metal Products segment was also transferred to Yamaha Metanix, and that company has continued its operations to the present. In view of the fact that the demand for the principal product of Yamaha Metanix, materials for lead frames, has been declining for a long period, Yamaha has explored ways to further develop its electronic metals business that would stabilize the profitability of Yamaha Metanix. However, Yamaha reached the conclusion that developing new products and strengthening the competitiveness of Yamaha Metanix would be difficult and, accordingly, has considered the possibilities for entering new businesses, concluding alliances with other companies, and other courses of action. Recently, Yamaha received a proposal for further business development from Dowa Metaltech which has been in a business relationship with Yamaha Metanix, based on full understanding of its current situation, suggesting that Yamaha sell 90.0% of the shares it holds in Yamaha Metanix and all of the shares Yamaha holds in associated company Yamaha Olin Metal Co., Ltd. (Yamaha ownership: 50.0%; Head Office: Shingai 2630, Iwata, Shizuoka; President: Naoaki Nagase), to Dowa Metaltech. A basic agreement to this effect has been reached with Dowa Holdings and Dowa Metaltech. |
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| 2. Outline of the Company Whose Shares Will Be Sold (As of March 31, 2006) |
| (1) |
Company name |
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Yamaha Metanix Corporation |
| (2) |
Address |
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Shingai 2630, Iwata-shi, Shizuoka |
| (3) |
Representative |
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Akifumi Inoue, President and Representative Director |
| (4) |
Date of establishment |
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November 1, 1991 |
| (5) |
Scope of business |
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Manufacturing and sale of metals for use in electronic products |
| (6) |
Accounting period |
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March 31 |
| (7) |
Number of employees |
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244 |
| (8) |
Paid-in capital |
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¥500 million |
| (9) |
Number of shares issued |
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85,000 |
| (10) |
Principal shareholder (ownership percentage) |
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Yamaha Corporation (100.0%) |
| (11) |
Indicators of recent business performance |
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(¥ million) |
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| Fiscal year |
Ended March 31, 2006 |
Ended March 31, 2005 |
| Sales |
12,682 |
12,364 |
| Ordinary income |
457 |
821 |
| Net income |
328 |
1,244 |
| Total assets |
10,713 |
10,285 |
| Shareholder’s equity |
4,108 |
3,780 |
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| 3. Outline of the Company Purchasing the Shares |
| (1) |
Company name |
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Dowa Metaltech Co., Ltd. |
| (2) |
Representative |
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Yukio Ishibashi, President and Representative Director |
| (3) |
Address |
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4-14-1, Soto Kanda , Chiyoda-ku, Tokyo |
| (4) |
Scope of business |
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Metal processing (copper strips, copper alloy strips, brass bars, ceramic substrates, plated products, etc.) |
| (5) |
Principal shareholder (ownership percentage) |
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Dowa Holdings Co., Ltd. (100.0%) |
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| 4. Number of Shares, Transfer Price, and Ownership Percentages Following the Transfer |
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Number of shares to be sold: 76,500 |
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After the transfer of shares Yamaha will hold 8,500 shares, representing an ownership percentage of 10.0%. |
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| 5. Schedule |
| March 20, 2007 |
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Decision by the Board of Directors, signing of basic agreement |
| July 31, 2007 (Scheduled) |
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Signing of the share purchase agreement |
| September 30, 2007 (Scheduled) |
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Transfer of the shares |
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| 6. Impact on Yamaha |
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| Yamaha estimates that, as a result of the transfer of shares, on a consolidated basis, sales for subsequent fiscal years, will be ¥12.6 billion lower, recurring income will be ¥0.4 billion lower, and net income will be ¥0.3 billion lower than they were for the fiscal year ended March 31, 2006. |
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For further information, please contact
Yamaha Corporation
Public Relations Division,
Public & Investor Relations Group
TEL. +81-3-5488-6601
FAX. +81-3-5488-5060
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