NEC Corporation completed the acquisition of additional 10.8% stake in Japan Aviation Electronics Industry, Limited for ¥19.2 billion.
January 16, 2017
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NEC Corporation (TSE:6701) made an offer to acquire additional 10.8% stake in Japan Aviation Electronics Industry, Limited (TSE:6807) for ¥19.2 billion on May 31, 2016. NEC will acquire up to 10 million shares for ¥1,920 per share. Pursuant to the tender offer, JAE will continue to be independently conduct its business as a listed company. NEC will send one Director to JAE starting from JAE's first shareholders meeting to be held after the transaction. The transaction is subject to clearance under foreign and domestic anti trust laws, approval by Board of Japan Aviation Electronics Industry, Limited. The clearance under foreign and domestic anti-trust laws has been completed except for China. As of May 31, 2016, the transaction was resolved unanimously by the Board of Japan Aviation Electronics. The offer will commence on November 29, 2016.
Tokyo Hatchobori Law Office acted as legal advisor for Japan Aviation Electronics. SMBC Nikko Securities Inc. acted as financial advisor and tender offer agent for NEC Corporation. Development Bank of Japan acted as valuer for the tender offer.
NEC Corporation (TSE:6701) completed the acquisition of additional 10.8% stake in Japan Aviation Electronics Industry, Limited (TSE:6807) on January 17, 2017.
NEC Corporation specializes in the manufacturing and marketing computing and telecommunication equipments. Net sales break down by activity as follows:
- IT services (53.9%): integration, maintenance, outsourcing, support services, etc.;
- sale of IT infrastructure products and network systems (17%). In addition, the group provides network services;
- sale of digital government and financial services software (14.9%);
- other (12.7%): sale of hardware, mobile telephones, lighting products, energy management and storage systems, etc.
Net sales are distributed geographically as follows: Japan (75%), Asia/Pacific (11.2%), Europe/Middle East/Africa (9.8%) and Americas (4%).
NEC CORPORATION 
