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Press Release
Feb 27, 2004 09:17
Kodak Completes Tender Offer for Chinon Industries, Inc.
TOKYO & ROCHESTER, N.Y. --(Business Wire)-- Feb. 27, 2004 Eastman Kodak Company today announced that, through its Japanese subsidiary, it has succeeded in acquiring 87.3% of the voting rights of Chinon Industries, Inc. Having acquired super-majority control of Chinon, and pursuant to the approval of the relevant Japanese governmental authorities, Kodak intends to implement a cash-for-stock swap between its subsidiary and Chinon as scheduled, and to de-list Chinon from the Tokyo Stock Exchange.
Kodak initiated the tender offer on January 23, 2004, and the tender offer period closed yesterday. Kodak intends for Chinon to become a wholly owned subsidiary of Kodak Japan, Ltd. after the cash-for-stock swap. Chinon also will merge with Kodak's Digital Camera Research and Development center in Yokohama, Japan.
The move will help Kodak increase its worldwide design and manufacturing capability for consumer digital cameras and accessories, another advance in the digitally oriented growth strategy that Kodak announced in September.
"Our highly successful collaboration with Chinon began nearly 10 years ago and has evolved over time in response to the growing market for digital products," said Yusuke Kojima, General Manager, Worldwide Digital Camera and System Development, Digital & Film Imaging Systems, Eastman Kodak Company. "The successful completion of this tender offer and cash-for-stock swap process allows Chinon and Kodak to further enhance their position in the Japanese market, while simultaneously strengthening their position worldwide."
Susumu Cho, president of Chinon, and the Chinon board of directors unanimously voted to support this transaction. Chinon's board previously noted that, by becoming a wholly owned subsidiary of KJL, the company would enhance its well-developed capabilities in research and development, engineering, operations, and manufacturing.
"As a result of this acquisition, both Chinon and Kodak will be in stronger and more competitive positions, with an increased ability to bring innovative products to customers in Japan and around the world," Cho said.
Chinon Industries, established in 1948, is engaged in research, development, and manufacturing of digital cameras. Kodak is Chinon's largest customer, accounting for nearly 100 percent of Chinon's revenue for its fiscal year ended March 31, 2003, which was Y29,892M, or about $280 million at current exchange rates.
About Eastman Kodak Company and infoimaging
Kodak is the leader in helping people take, share, print and view images - for memories, for information, for entertainment. The company is a major participant in infoimaging, a $385 billion industry composed of devices (digital cameras and flat-panel displays), infrastructure (online networks and delivery systems for images) and services & media (software, film and paper enabling people to access, analyze and print images). With sales of $13.3 billion in 2003, the company comprises several businesses: Health, supplying the healthcare industry with traditional and digital image capture and output products and services; Commercial Printing, offering on-demand color printing and networking publishing systems; Commercial Imaging, offering image capture, output and storage products and services to businesses and government; Display & Components, which designs and manufactures state-of-the-art organic light-emitting diode displays as well as other specialty materials, and delivers optics and imaging sensors to original equipment manufacturers; and Digital & Film Imaging Systems, providing consumers, professionals and cinematographers with digital and traditional products and services.
Editor's Note: For additional information about Kodak, visit our web site on the Internet at: www.kodak.com -0-