October 31, 2016
Notice Regarding Transfer of Shares of JVCKENWOOD Arcs Corporation
JVCKENWOOD Corporation (“JVCKENWOOD”) hereby announces that it has reached an agreement with Hibino Corporation (hereinafter referred to as “Hibino”) regarding the transfer of shares of JVCKENWOOD Arcs Corporation (hereinafter referred to as “Arcs”), JVCKENWOOD’s consolidated subsidiary engaged in sales and installation of professional audio and imaging equipment. JVCKENWOOD and Hibino have signed a share transfer agreement effective today.
1．Reason for Transfer of Shares
As announced in the press release “Notice on Strategic Alliance between Victor Arcs Co., Ltd. (currently ‘JVCKENWOOD Arcs Corporation’), a subsidiary of JVCKENWOOD, and Hibino Corporation” dated August 18, 2010, JVCKENWOOD transferred 35% of the outstanding shares of Arcs to Hibino in October 2010 with the aim of establishing a strategic alliance between the JVCKENWOOD Group and Hibino.
Based on this strategic alliance, we promoted collaboration by leveraging the two groups’ related technologies and products through Arcs. However, the professional audio equipment business (amplifiers, speakers and microphones, etc.) of JVCKENWOOD for the sound reinforcement system market for concert halls is in a diminishing trend. For this reason, we have judged that Arcs can achieve greater growth and corporate value enhancement by operating business in an integrated manner with Hibino, which provides total solutions of professional audio and imaging systems. Accordingly, JVCKENWOOD has reached an agreement with Hibino regarding the transfer of all the shares of Arcs held by JVCKENWOOD, and we have signed a share transfer agreement effective today.
At the JVCKENWOOD Group, we are advancing the expansion of the professional systems business, led by our subsidiary JVC KENWOOD Public & Industrial Systems Corporation, and we will continue to examine the possibility of collaborating with Hibino Group in this business from a broad perspective.
2．Overview of JVCKENWOOD Arcs Corporation (as of March 31, 2016)
|Corporate Name||JVCKENWOOD Arcs Corporation|
|Location of Head Office||LOOP-X building 12 floors 3-9-12, Kaigan, Minatoku, Tokyo|
|Representative’s name and title||Hiroshi Samejima, President|
|Outline of business||Sales and installation of professional audio and imaging equipment|
|Established||March 19, 1960|
and Percentage of Shareholding
|JVCKENWOOD Corporation 59.26%
Hibino Corporation 35.00%
Sansha Electric Manufacturing Co., Ltd. 5.71%
3．Overview of Hibino Corporation (as of March 31, 2016)
|Corporate Name||Hibino Corporation|
|Location of Head Office||3-5-14, Kounan, Minatoku, Tokyo|
|Representative’s name and title||Teruhisa Hibino, President|
|Outline of business||
|Established||November 13, 1964|
and Percentage of Shareholding
|HI_BINO LTD. 29.22%
Teruhisa Hibino 10.08%
Hibino Corporation Employee Shareholding Association 5.36%
JVCKENWOOD and Hibino will initiate various procedures for the share transfer planned to be implemented on December 1, 2016.
We expect that the impact of the share transfer on JVCKENWOOD’s consolidated operating results for the fiscal year ending March 2017 will be insignificant. However, the Company will promptly announce matters requiring disclosure if they arise as a result of a change in the impact of the share transfer on the consolidated operating results.
For further information, please contact:
- [Media Contact] Public and Investor Relations Department, Corporate Communication Division, JVCKENWOOD Corporation
3-12, Moriya-cho, Kanagawa-ku, Yokohama, Kanagawa 221-0022 Japan