Tokyo, Japan - October 2, 2018
Yokogawa Electric Corporation ("the Company") hereby notifies that it has concluded an agreement to transfer all the shares of Yokogawa Denshikiki Co., Ltd., a wholly-owned subsidiary, to Higaki Sangyo Kaisha, Ltd.
1. Reason
Founded in October 1960, Yokogawa Denshikiki has been engaged in such businesses as the development, manufacture, and sale of marine navigation systems, aerospace engine ignition system components, and environmental measurement equipment.
Higaki Sangyo Kaisha is engaged in a variety of businesses including the sale of steel and other shipbuilding materials and the maintenance of shipyard machinery. Higaki Sangyo Kaisha values Yokogawa Denshikiki's strengths in such areas as marine navigation systems, aerospace engine ignition system components, and environmental measurement equipment, and has been striving to diversity its business and accelerate research and development. Yokogawa, on the other hand, has been looking for ways to ensure sustainable growth for Yokogawa Denshikiki by making use of its proprietary technologies and customer base. Given the shared interest that the Yokogawa Group and Higaki Sangyo Kaisha have in developing their respective businesses, the Company has decided to transfer all of Yokogawa Denshikiki's shares to Higaki Sangyo Kaisha.
2. Outline of Yokogawa Denshikiki Co., Ltd.
Capital: 300 million yen (100% invested by the Company)
Sales: 12.4 billion yen (fiscal year 2017)
Number of employees: 665 (as of March 31, 2018)
3. Outline of Higaki Sangyo Kaisha, Ltd.
Capital: 80 million yen
Sales: 97.3 billion yen (fiscal year 2017)
Number of employees: 45 (as of December 31, 2017)
4. Schedule
December 2018: Completion of share transfer (planned)
January 2019: Launch of operations by the new organization (planned)
5. Impact of this share transfer on the Company's consolidated business results
We estimate that this share transfer will have a negligible impact on our financial results. We will look further into this and make an official announcement on this topic at the November financial results briefing for the 2nd quarter of fiscal year 2018.
About Yokogawa
Founded in 1915, Yokogawa engages in broad-ranging activities in the areas of measurement, control, and information. The industrial automation business provides vital products, services, and solutions to a diverse range of process industries including oil, chemicals, natural gas, power, iron and steel, and pulp and paper. With the life innovation business the company aims to radically improve productivity across the pharmaceutical and food industry value chains. The test & measurement, aviation, and other businesses continue to provide essential instruments and equipment with industry-leading precision and reliability. Yokogawa co-innovates with its customers through a global network of 113 companies spanning 61 countries, generating US$3.8 billion in sales in FY2017. For more information, please visit www.yokogawa.com.