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SMMD, Hokuriku Electric Conclude Absorption-Type Corporate Split Contract
05/13/2010 - Hokuriku Electric and Sumitomo Metal Micro Devices (SMMD) have concluded a contract on the absorption-type corporate split, whereby the Systems Division of Hokuriku Electric will be split and succeeded to SMMD on August 2, 2010. SMMD is scheduled to change its company name to HDK Micro Devices that same day.
Sumitomo Metal Micro Devices, Inc. (SMMD), a subsidiary of Sumitomo Metals, and Hokuriku Electric Industry Co., Ltd. agreed in September to make a capital and business alliance for the electronic module business and to establish a new company—80% owned by Hokuriku Electric and 20% by Sumitomo Metals.
According to the agreement, Hokuriku Electric and SMMD have concluded a contract on the absorption-type corporate split, whereby the Systems Division of Hokuriku Electric will be split and succeeded to SMMD on August 2, 2010. SMMD is scheduled to change its company name to HDK Micro Devices that same day.
The new company intends to integrate the strengths of both companies and reinforce its business in areas such as customer services.
On the scheduled date of the absorption-type corporate split, Sumitomo Metals plans to purchase some treasury stock of Hokuriku Electric, corresponding to its purchase of SMMD's shares to enhance mutual trust and the cooperative relationship between the two companies and to make the deal more effective.
The new company intends to integrate the strengths of both companies and reinforce its business in areas such as customer services.
On the scheduled date of the absorption-type corporate split, Sumitomo Metals plans to purchase some treasury stock of Hokuriku Electric, corresponding to its purchase of SMMD's shares to enhance mutual trust and the cooperative relationship between the two companies and to make the deal more effective.
Details remain to be determined.
