(Summary) Announcement of the Commencement of the TOB for the Shares of Fuji Kiko
JTEKT Corporation (“JTEKT”) has concluded agreements with TACHI-S CO., LTD (“Tachi-S”) and Fuji Kiko Co., Ltd (“Fuji Kiko”) to acquire all of Fuji Kiko’s shares through TOB (“Transaction #1”), and Tachi-S will acquire the seat business of Fuji Kiko (“Transaction #2”).
【Purpose of the Transactions】
● While JTEKT has pursued “No. 1 and Only One” position as the Group Vision,
upgrading overall competitiveness of the Group has necessitated actions
intended for more unified group management, featuring more robust and lean
operations.
● By making Fuji Kiko its wholly owned subsidiary, JTEKT intends to integrate
the multi-tiered column businesses, strengthen the ability to offer
brand-new systems as a part of JTEKT’s steering business, and thereby
solidifying our No.1 position in the global steering system market.
● JTEKT’s expectations from this deal, if finalized, are that the Group as
a whole, with Fuji Kiko incorporated, would have better profit structure
and business competitiveness.
A) Strengthened system capability (integrated development and production of
steering systems)
B) Better efficiency in development and resources management, focusing on
highly advanced technology
C) Marketing collaboration and customer base expansion
【Transaction #1】
※ Provided that certain legal and procedural requirements including Japanese
and foreign jurisdictional competition laws are met, JTEKT is planning
to commence TOB with the purpose of acquiring all of Fuji Kiko’s shares.
