OKI Signs Definitive Agreement with ROHM to Transfer Shares of Its Semiconductor Subsidiary

Oki Electric Industry Co., Ltd. (TOKYO:6703) announced that OKI and Rohm Co., Ltd. (TOKYO:6963) signed a definitive agreement on July 24 whereby OKI will transfer 95% of the shares of its new semiconductor company, OKI Semiconductor Co., Ltd., to ROHM. The new company will be established through an incorporation-type company split, effective October 1, 2008. “We are pleased to reach and sign the definitive agreement with ROHM,” said Katsumasa Shinozuka, President and CEO at OKI. “Because the product overlap between OKI and ROHM is relatively low, we believe by transferring shares of the new company, the OKI-nurtured semiconductor business will continue to grow under ROHM and maximize strengths of both companies.” OKI has been implementing company-wide initiatives to revamp its business structure to increase corporate value... [read full story]