(Source: Business Wire)
NEC Electronics Corporation (NEC Electronics; TSE: 6723), Renesas
Technology Corp. (Renesas), NEC Corporation (NEC; TSE: 6701), Hitachi,
Ltd. (Hitachi; TSE: 6501 / NYSE: HIT), and Mitsubishi Electric
Corporation (Mitsubishi Electric; TSE: 6503) today announced changes
concerning the capital injection listed in its September 16, 2009 press
release entitled "NEC Electronics and Renesas Reach a Definitive
Agreement on Business Integration."
1. Reason for the Changes
In accordance with the plan to integrate business operations at NEC
Electronics and Renesas (the "Business Integration"), the five companies
announced on September 16 that Renesas will issue shares of Renesas
common stock to Hitachi and Mitsubishi Electric, the sole shareholders
of Renesas, before the effective date of the Business Integration (the
"Pre-merger Capital Injection"). In addition, after the scheduled date
of the Business Integration, April 1, 2010, the new integrated company
after the Business Integration (the "Integrated Company") will issue
shares of its common stock to NEC, Hitachi and Mitsubishi Electric (the
"Post-merger Capital Injection").
The five companies also announced that the amount of the Pre-merger
Capital Injection could be reduced and the amount of the Post-merger
Capital Injection could be increased depending on the business result of
NEC Electronics for the first half of the fiscal year ending March 31,
2010.
Today's changes were made due to NEC Electronics' financial results,
which were settled today, November 9, 2009. The changes in Post-merger
Capital Injection were resolved at NEC Electronics' meeting of the Board
of Directors held earlier today.
2. Outline of the Changes
The changes are underlined.
2.1 Outline of reinforcement of capital
As a condition to the Business Integration, Renesas will issue shares of
Renesas common stock to Hitachi and Mitsubishi Electric, the sole
shareholders of Renesas, in exchange for an aggregate of 71.7
billion yen before the effective date of the Business Integration (including
shares issued on September 29, 2009 in exchange for an aggregate of 55.0
billion yen).
