TDK : Announcement of the execution of a letter of intent to enter into a business collaboration and establish a joint venture with Shenzhen Desay Battery Technology Co., Ltd.
December 22, 2020 at 01:09 pm IST
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December 22, 2020
TDK Corporation (President and CEO: Shigenao Ishiguro) announces that TDK's wholly-owned subsidiary Navitasys Technology Limited (Hong Kong Special Administrative Region of China, hereinafter 'NVT HK'), which engages in the package business of rechargeable battery, signed a letter of intent with respect to discussing a potential business collaboration, including the establishment of a joint venture with Shenzhen Desay Battery Technology Co., Ltd.(Guangdong, China, hereinafter 'SZ Desay'), which manufactures and sells the package of rechargeable battery. It is planned that the maximum shareholding ratio of NVT HK will be 49% and the remaining will be owned by SZ Desay. The joint venture will be Huizhou Desay Battery Co., Ltd. (Guangdong, China), which is currently a wholly-owned subsidiary of SZ Desay prior to the formation of joint venture.
This business collaboration aims to strengthen the cooperative relationship between both companies through a joint venture in the rechargeable battery package business and further strengthen product competitiveness in this field.
From now, both companies will discuss the transaction details, including the consideration to be paid for the joint venture shares in the future. This letter of intent is not legally binding and the business collaboration will only be implemented if a formal agreement is reached through discussion by the parties and upon the completion of satisfactory due diligence by both companies. It will be disclosed promptly as soon as it is decided to conclude a formal agreement.
Overview of TDK's subsidiary
(1)
Name
Navitasys Technology Limited
(2)
Location
Hong Kong Special Administrative Region of the People's Republic of China
(3)
Representative
Yee ChunKeung (General Manager)
(4)
Business
Manufacture and sale of rechargeable battery packages
(5)
Capital
US$ 10,000,000
Overview of the other party to conclude the letter of intent
(1)
Name
Shenzhen Desay Battery Technology Co., Ltd.
(2)
Location
Guangdong, China
(3)
Representative
Liu Qi (Chairman)
(4)
Business
Manufacture and sale of rechargeable battery packages
(5)
Capital
RMB 207,197,738 (about 3,200 million Japanese yen)
(6)
Date of establishment
4th September, 1985
(7)
Large shareholders and shareholding ratio
(As of 30th June, 2020)
Guangdong Desay Corporation (44.80%)
Central Huijin Asset Management Ltd. (3.39%)
Zhong Ou AMC of ICBC (3.18%）
Hong Kong Securities Clearing Company Limited (2.47%)
Overview of a company planning to become a joint venture
(1)
Name
Huizhou Desay Battery Co., Ltd.
(2)
Location
Guangdong, China
(3)
Representative
Zeng Jianyun (Chairman)
(4)
Business
Manufacture and sale of rechargeable battery packages
(5)
Capital
RMB 700,000,000 (about 10,700 million Japanese yen)
(6)
Date of establishment
22nd October, 2002
(7)
Equity ratio (planned)
The maximum shareholding ratio of NVT HK will be 49% and the remaining will be owned by SZ Desay.
※Currency exchange rate is 15.22 Japanese yen / 1RMB.
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TDK Corporation published this content on 22 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 December 2020 07:38:01 UTC
TDK Corporation specialises in the design, manufacture and sales of electronic products and recording equipment. Net sales break down by family product as follows:
- rechargeable batteries and energy converters (46.9%);
- electronic equipment and components (33.1%): ceramic capacitors, ferrites, magnets, inductors, high-frequency components, transformers, converters, thermistors, etc.;
- recording equipment (13.5%): recording appliances (notably magnetic heads for hard disks, heads for disk drives and thermal printer heads), recording equipment (audio and video cassettes, optical disks, computer data storage tapes, PC cards, etc.);
- other (3.5%): rechargeable batteries, memory cards, displays and mechatronic equipment.
Net sales break down geographically as follows: Japan (8%), China (56.8%), Asia (18.7%), Europe (10%) and Americas (6.5%).
TDK : Announcement of the execution of a letter of intent to enter into a business collaboration and establish a joint venture with Shenzhen Desay Battery Technology Co., Ltd.
TDK CORPORATION 
