Iwatsu Electric Co Ltd (the “Company“ or “we’”) announced today that we resolved to transfer all of our shares of our Malaysian Manufacturing subsidiary (consolidated) Iwatsu Malaysia Sdn Bhd ( hereafter IWM) as of the end of July 2023. This is part of our medium term management plan named ‘Reborn’ which is implemented to improve and streamline production efficiency of the Company. As a result of the share transfer, IWM is scheduled to cease to be a subsidiary from August 2023.
1. Profile of the specific Subsidiary subject to transfer
| 1. | Name | Iwatsu (Malaysia) Sdn Bhd |
| 2. | Location | Kawasan Perusahaan Tuanku Jaafar, 71450 Sg Gadut Negeri Sembilan, Malaysia |
| 3. | Description of Business | Information and Communication equipment manufacturing industry & Electronics contract Manufacturing Services (EMS) |
| 4. | Major Share Holder | Iwatsu Electrice Co Ltd |
| 5. | Ration of shareholding | 100% |
2. Reason for the change
Iwatsu Electric Co Ltd has pledged to resolve production efficiency issues by promoting business strategies and sustainability strategies in tandem. In order to achieve these goals, the group has considered policies with a long term plan and formulated a Medium Term management plan [REBORN] which will be considered as milestone years. REBORN is an initiative to improve optimal growth, by leveraging the strengths of existing plants to expand into growth areas and promoting structural reforms, this will be established by consolidating information and telecommunications equipment currently operated at the two bases into one of our main plants in Fukushima Prefecture. Under such circumstances the company has carefully considered the position of IWM. In order for IWM to further grow in the future while taking advantage of its business foundation and strength we have decided the best way to do so is to transfer our shares to a group that share our vision for growth and utilize new resources and sales networks.
3. Transferee
| Name | Silitech Technology Corporation |
| Address | No.73, Kuirou Shan Rd., Tamsui Dist., New Taipei City 25144, Taiwan |
| Job Title/Name of Representative | Chairman Yu-Heng Chiao |
| Description of Businesses | Manufacturers of electronic parts |
| Common stock | 680 million New Taiwan Dollars |
| Date of Incorporation | October 26, 2001 |
Silitech is one of the companies comprising of the Walsin Group in Taiwan. In addition to manufacturing mechanical components, they have expanded their contract to manufacturing business in recent years, and have a plant at their Taiwan headquarters and in Penang, Malaysia. It is listed on the Taiwan Stock Exchange. They procure various manufacturing materials from Walsin.
4. Transfer price
The transfer price will not be disclosed depending on the intention of the transferee.
5. Date of transfer (scheduled)
July 31, 2023
6. Future development
Looking ahead, we plan to expand the use of electronic components from Walsin group to which the share transferee belongs, thereby stabilizing the supply chain. At the same time, we plan to start with technological exchanges and seek to develop synergies in business collaboration.
Inquiries
Press peopleIWATSU ELECTRIC CO.,LTD.Management DivisionCorporate Planning Department Public Relations Group1-7-41 Kugayama, Suginami-ku, Tokyo, Japan. |