Although HOYA CORPORATION (“HOYA”) announced on September 30, 2008 that Showa Denko K.K. (“SDK”) and HOYA had reached a basic agreement to consolidate their hard disk (HD) media operations through the establishment of a joint venture, HOYA has decided to terminate negotiations with SDK regarding this matter.
1. Reason for Termination of Negotiations
HOYA reached a basic agreement with SDK on September 30, 2008 to consolidate HD media operations with SDK through the establishment of a joint venture in order to ensure the continued growth of the HD media business and strengthen competitiveness in a sustainable manner. HOYA announced the postponement of the planned consolidation on February 19, 2009 since negotiations over the matter were continuing at that point.
However, in the midst of the changes in the economy and industry occurring after the basic agreement was reached, HOYA has determined that it will be difficult to achieve its original objectives through the establishment of a joint venture with SDK and, accordingly, today decided to terminate negotiations.
2. Future prospects
The expiration date of the basic agreement is March 29, 2009. HOYA does not expect to incur any liabilities as a consequence of the termination of the negotiation or expiration of the basic agreement, as HOYA has not undertaken any material commitments in connection with the originally planned consolidation.
3. Impact on operating results of HOYA Group
The termination of negotiations will have no influence on the earnings forecast for the fiscal year ending March 31, 2009, which were announced as of February 3, 2009, because HOYA did not include the planned consolidation in the forecast. The consolidation was scheduled for the fiscal year ending March 31, 2010. HOYA has not yet announced its full-year earnings forecast for the fiscal year ending March 31, 2010.
Corporate Communications of HOYA Group