NEC Corporation to divide its Compound Semiconductor Device Division
NEC Corporation (NEC) today approved at a meeting of the board of directors to divide its Compound Semiconductor Device Division and transfer the Division s business (the Business) to NEC Compound Semiconductor Devices Ltd, a wholly-owned subsidiary of NEC to be established on 1 October 2001 (the New Company).
By dividing and transferring the Business to the New Company, NEC aims to enhance competitiveness of its optical and microwave devices business and to further raise its corporate values through concentration of resources and a faster decision making process.
As of 1 October 2001, NEC will divide and transfer the Business to the New Company, under a scheme of the division of business introduced by the amended Japanese Commercial Code. Based on this scheme, NEC will acquire all the shares (200,000 shares without par value) of the New Company to be issued at the time of establishment.
Schedule
Board Resolutions of NEC - 27 July 2001 Date of the Business Division - 1 October 2001 Date of Commercial Registration - 1 October 2001
Asset Transfer
The New Company will succeed NEC s assets, liabilities, and intellectual properties relating to the Business, as well as the rights and obligations under the principal contracts for sale, development, manufacturing, and others in connection with the Business.
Summary of the New Company
Company Name - NEC Compound Semiconductor Devices Ltd Business Area - Development, manufacture, sales and support services of optical devices and microwave devices and other electronic devices Date of Establishment - 1 October 2001 (planned) Head Office - 1753 Shimonumabe, Nakahara-ku, Kawasaki, 211-8666, Japan Representative - Akira Mineo (President) Capital - 10,000 million Yen Total assets - 28,060 million Yen (estimated) End of fiscal year - 31 March
About NEC Corporation
NEC Corporation is a leading provider of Internet solutions, dedicated to meeting the specialised needs of its customers in the key computer, network and electron device fields through its three market-focused in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation, with its in-house companies, employs more than 150,000 people worldwide and saw net sales of 5,409 billion Yen (approx. US$50 billion) in fiscal year 2000-2001.
For further information, please visit the NEC home page at: http://www.nec.com
Web site: http://www.nec.com