Aisin Seiki Co., Ltd., Denso Corporation, Sumitomo Electric Industries, Ltd. and Toyota Motor Corporation have agreed to increase the capital and to adjust the share-holding ratio of their joint venture Advics, Co., Ltd., pending approval of the Japan Fair Trade Commission.
1. Background and objective
Aisin Seiki, Denso, Sumitomo Electric Industries, Toyota and Advics agreed in November 2014 to accelerate the consolidation of brake system-related efforts under the control of Advics to further strengthen the competitiveness of Toyota’s brake system business. In the process of implementing this business reorganization, the companies realized the necessity of increasing Advics’ capital to strengthen its business foundation, not only for achieving efficiencies in the development of conventional brake systems, but also for heightening the level of advanced brake-system technologies needed in such areas as autonomous driving. The companies also agreed that the capital increase is to be conducted through third-party allocation, with the capital increase being underwritten by the three companies of Aisin Seiki, Denso and Toyota. Concurrently, Sumitomo Electric Industries is to transfer a portion of its holdings to Denso, resulting in an adjustment to the share-holding ratio.
2. Underwriting of capital increase and adjustment of share-holding ratio
1) Capital increase in Advics through third-party allocation
| Amount of capital increase | 10.338 billion yen Breakdown: Capital: 5.169 billion yen Additional paid-in capital: 5.169 billion yen |
|---|
Note: Amounts abbreviated.
2) Advics’s capital
| Current capital | 7.040 billion yen | |
|---|---|---|
| Capital increase | 5.169 billion yen | |
| Capital after increase | 12.209 billion yen |
Note: Amounts abbreviated.
3) Adjustment to share-holding ratio
As a result of the capital increase and the transfer of shares between shareholders described above, the share-holding ratio is to become as described below.
| Investing company | Before | After |
|---|---|---|
| Aisin Seiki | 55% | 51% |
| Denso | 18% | 34% |
| Sumitomo Electric Industry | 18% | 6% |
| Toyota | 9% | 9% |
3. Implementation timing
September 2016 (tentative)
4. Outline of Advics
| Trade name | Advics Co., Ltd. |
|---|---|
| Location | 2-1, Showa-machi, Kariya, Aichi Prefecture |
| President | Satoshi Ogiso |
| Business activities | Development, production and sales of automotive brake systems and components |
| Capital | 7.04 billion yen (as of March 31, 2016) |
| Established | July 3, 2001 |
