Magnecomp Precision Technology (MPT) announced today that its major shareholder, Magnecomp International Limited (MIL) had decided to sell its entire 74.3% stake in MPT to TDK Corporation, a leading Japan based Hard Disk Drive (HDD) magnetic heads manufacturer. The transaction is expected to be completed by the end of this year. With TDK as a new controlling shareholder, MPT expects to improve its performance and strengthen its position as a key supplier of suspension assemblies for the global HDD industry.
MIL will sell its entire 74.3% stake, equivalent to 1,549,550,802 shares, in MPT in two parts – initial sale of 64.3% stake with the balance 10.0% stake to be sold subsequently. The total sale consideration will be USD 123.0 million or approximately Bt. 4,230.3 million. The USD-Bt translations are based on the average closing exchange rate of USD1: Bt 34.3926 as at 28 August 2007 as provided by Bank of Thailand. Notwithstanding the above, the share transfer price in Thai Baht terms will be subject to change in accordance with the USD-Bt exchange rate as at the Completion date.
Subsequent to the completion of the initial sale, which is expected to be completed by the end of 2007, TDK will become the single largest shareholder in MPT, while MIL’s shareholding will decrease from 74.3% to 10.0%.
TDK Corporation (Tokyo Stock Exchange : 6762) is a leading global electronics company based in Japan. It was established in 1935 to commercialize "ferrite," a key material in electronics and magnetic products. TDK Corporation’s current product line includes ferrite materials, electronic components, wireless computer networking products, magnetic heads for HDD, and advanced digital recording media. TDK Corporation is listed on the Tokyo Stock Exchange, New York Stock Exchange and London Stock Exchange. Information of TDK can be viewed at www.tdk.co.jp.
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