Aiming to strengthen its business relationship with Pioneer Corporation, Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has entered into a capital and business alliance agreement with Pioneer, under which Mitsubishi Electric will invest approximately 4 billion yen in Pioneer in exchange for the acquisition of approximately 20 million common shares of Pioneer issued through a third-party allotment.
Mitsubishi Electric and Pioneer have mutually strengthened their development capabilities and efficiencies by collaborating in the development of a car navigation systems platform. To respond to ongoing changes in the car electronics industry, Mitsubishi Electric plans to enter into a new joint development agreement with Pioneer and further strengthen its platform corresponding to future multimedia technologies for the continued development of its car navigation platform under the new agreement.
An outline of Pioneer’s third-party allotment is as follows:
– Subscribed shares: 20,356,500 common shares
– Subscription price: 194 yen per share
– Total subscription: 3,949,161,000 yen
– Payment due date: June 28, 2013
Mitsubishi Electric’s payment of the subscription money is subject to the satisfaction of certain conditions, including the securities registration statement regarding Pioneer’s third party allotment of new shares (which statement is based on the Financial Instruments and Exchange Law) becoming effective, agreement on details of the new joint development agreement between Mitsubishi Electric and Pioneer, and the execution thereof.