Commencement of O.Y.L. Acquisition
October 5, 2006
| Press Release |
October 5, 2006
Company Name: Daikin Industries, Ltd.
Representative: Yukiyoshi Okano, President and COO
Securities Identification Code: 6367
Contact Person: Michio Shiba, Manager, Public Relations Department
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| Commencement of O.Y.L. Acquisition |
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Having received approval by the European Commission to proceed with the acquisition (hereafter referred to as the "Acquisition") of the Malaysian enterprise O.Y.L. Industries Bhd. (Headquarters: Kuala Lumpur, and hereafter referred to as "OYL"), Daikin Industries, Ltd. will commence with the transfer of stock through the negotiated transactions between two (2) principal shareholders in addition to a Mandatory General Offer in Malaysia involving the same company.
As previously mentioned, the "Acquisition" will involve the purchase of common stock at a share price of 5.73 Malaysian Ringgits (hereinafter RM) per 1 share of stock (approximately 180 yen: 1 RM, 31.5 yen conversion rate, same as below) with Daikin intending to acquire 100% ownership of "OYL" stock. In the case of 100% acquisition of shares, the total purchase price is expected to be RM7,608 million (approximately 239 billion yen). "Acquisition" will occur in the following two steps:
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| 1. |
Stock Transfer by Negotiated Transactions |
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Daikin will acquire stock (totaling approximately 45.2%) through negotiated transactions from Hong Leong Secretarial Services Sdn. Bhd., a privately held subsidiary of the Malaysian financial group Hong Leong Group Holdings, a major Malaysian investment holding group and largest "OYL" shareholder with approximately 40% of the total amount of OYL issued stock, as well as from Mr. Liu Wan Min, the "OYL" president and highest ranking management executive and holder of 5.2% of the total amount of "OYL" issued stock. The purchase price is approximately RM3,441 million (approximately 108 billion yen).
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| 2. |
Remaining Shares through Mandatory General Offer (Maximum of approximately 54%) |
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| (1) |
Period of Mandatory General Offer is from October 6, 2006 to October 27, 2006 (scheduled with possibility of extension). |
| (2) |
Assuming that all shares are purchased, the total price of acquisition price total is projected to be RM4,167 million (approximately 131 billion yen). |
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| For more information, please contact |
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Daikin Industries, Ltd. |
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