Nidec Completes the Purchase of Stake in OKK Corporation via Third-Party Share Allocation

Rhea-AI Summary

Nidec Corporation (TSE: 6594; OTC US: NJDCY) announced the completion of its acquisition of OKK Corporation's shares through a third-party allocation, paying a total of JPY 5,478,950,247 on February 1, 2022. This purchase involved acquiring 15,853,444 common shares at JPY 345.60 each. Despite the acquisition, Nidec expects no significant impact on its consolidated financial performance for the fiscal years ending March 31, 2022, and March 31, 2023. The company will disclose further information if necessary, in line with Tokyo Stock Exchange regulations.

Positive

• Acquisition of OKK Corporation enhances Nidec's portfolio in the machine tools market.
• The purchase price of JPY 5,478,950,247 reflects strategic investment in a well-established company.

Negative

• No significant financial impact is expected for the current and next fiscal years, indicating potential limits on growth.

KYOTO, Japan, Feb. 01, 2022 (GLOBE NEWSWIRE) -- Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today that, based on the resolution made in a meeting of its Board of Directors held on November 18, 2021 (Japan time), the Company has completed the purchase of the shares of OKK Corporation (“OKK”) through a third-party allocation of common shares (the “Share Purchase”) by paying their total issue value of 5,478,950,247 yen today (February 1, 2022). For more details and other information regarding the Share Purchase, please see our press release, “Nidec to Execute a Capital Alliance Agreement to Purchase Stake in OKK Corporation via Third-party Share Allocation,” dated November 18, 2021.

1. Outline of OKK in relation to the Third-party Allocation of Shares
   Company Name: OKK Corporation
   Headquarter: 8-10-1, Kita-Itami, Itami, Hyogo, Japan
   Foundation: October 1915
   Capital: JPY6,283,076,312
   Director: Yoshihide Morimoto, Representative Director and President (with positions remaining unchanged after the Share Purchase)
   Production Bases: Japan (Hyogo prefecture) and Thailand
   Principal Businesses: Design, manufacture, sales of machine tools, and provision of related installation, technical instructions, after-sales services, etc.
   Number of Employees: 758 (consolidated), and 500 (non-consolidated) (as of March 31, 2021)
   
   
2. Outline of the Share Purchase
   Date of payment: February 1, 2022
   Number of Shares for the Purchase: 15,853,444 common shares
   Price of the Shares: JPY345.60 per share
   Amount of payment: JPY5,478,950,247
   
   
3. Effect on Financial Performance for the Current and Next Fiscal Year
   The transaction is expected to have no significant impact on the Company’s consolidated financial performance for this fiscal year ending March 31, 2022 and for coming fiscal year ending March 31, 2023. If necessary, the Company will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.

Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, the risks to successfully integrating the acquired business with the Nidec Group, the anticipated benefits of the Transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies and changes in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements except as may be required by law.

Contact:
Masahiro Nagayasu
General Manager
Investor Relations
+81-75-935-6140
ir@nidec.com

FAQ

What is the latest acquisition by Nidec Corporation (NJDCY)?

Nidec Corporation completed the acquisition of OKK Corporation's shares on February 1, 2022.

How much did Nidec pay for OKK Corporation?

Nidec paid JPY 5,478,950,247 for the acquisition of OKK Corporation.

Will the acquisition of OKK Corporation affect Nidec's financial performance?

Nidec anticipates no significant impact on its financial performance for the fiscal years ending March 31, 2022, and March 31, 2023.

What is the purchase price per share for OKK Corporation?

The purchase price per share for OKK Corporation was JPY 345.60.

How many shares did Nidec acquire from OKK Corporation?

Nidec acquired 15,853,444 common shares from OKK Corporation.