News

2013/08/12 Take Over Bid of Royal Electric Co Ltd by Odawara Engineering Co Ltd

2013 August 12th

To our Valued Customers

The Announcement of the Friendly Take Over Bid of Royal Electric Co.,Ltd. by

Odawara Engineering Co.,Ltd.

We are honored to make an annoucement that the friendly Take Over Bid of Royal Electric Co.,Ltd. by Odawara Engineering Co.,Ltd. will be executed. This information was disclosed at the JSDAQ on 12th August 2013.

According to the release, the Take Over Bid is planed to be done by 9th September 2013. Once the settlement is done on 17th September 2013, Odawara Engineering Co.,Ltd. will become the largest shareholder of the Royal Electric Co.,Ltd.

The purpose of the Take Over Bid is to get the minumum of the 67.20% of the outstanding shares which Ono holding Co., Ltd., a corporation under the Reorganization and Rehabilitation Act, holds up to this point. Consequently Royal Electric Co.,Ltd. will become a consolidated subsidiary. Yet the stock will be kept listed on the JASDAQ.

Taga Manufacturing Co., Ltd. is kept 100% subsidiary of Royal Electric Co., Ltd.

Odawara Engineering Co., Ltd. is a world leading coil winding machine maker specialized in varieties of motors whose management aims are to support worldwide customers with productivity and labor saving in the area of the consumer electronics, automotive sectors, industrial equipment, office automation apparatus and audio visual systems. Odawara Engineering Co., Ltd. has very strong earnings and balance sheet of itself. But by adding Royal Electric Co., Ltd. into the group, they will maximize synergy effect of sales and marketing network, production engineering, skills and personnel field.  It definitely will lead to interface our strength to expand the business potentials and to upgrade enterprise value.

For Royal Electric Co.,Ltd., it is extremely good opportunity to have automation skills of the coil winding machines to increase productivity in the near future. For Taga Manufacturing Co.,Ltd., it is also magnificent opportunity. Odawara and Taga are known as coil winding machine makers, the distinctive feature of the business at each company have least overlap of product lines and customers. Consequently the new products can be developed jointly by interfacing the skills and cross-selling the products. The business will naturally expand.

Standardization and modularization of mechanical design will lead to cost reduction, shortening delivery date and improvement of after service. It will upgrade enterprise value fast.

We now have strong belief that we can achieve to strengthen our corporate foundation.

We are looking forward to serving you further as always.

Sincerely Yours,

Taga Manufacturing Co., Ltd.

President

Mr. Yoichi Kato

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