Development Bank of Japan and Sony Sign Non-Binding Memorandum
OREANDA-NEWS. March 22, 2012. Development Bank of Japan Inc. (“DBJ”) and Sony Corporation (“Sony”) today announced that they have entered into a non-binding memorandum of understanding that outlines their intent for Sony to sell to DBJ Sony’s chemical products businesses operated by Sony Chemical & Information Device Corporation (“SCID”), a wholly-owned subsidiary of Sony. DBJ and Sony are aiming to sign definitive and legally-binding agreements by the end of May 2012, subject to due diligence on the businesses contemplated to be sold and negotiation of detailed terms and conditions of the sale. Thereafter, the two parties will aim to complete the sale during the third quarter of the fiscal year ending March 31, 2013, subject to the receipt of any necessary government authorizations and approvals.
SCID is engaged in the manufacture and sale of chemical products, including adhesive materials such as anisotropic conductive film, optical materials such as optical elasticity resin, and magnetic devices. SCID also manufactures products sold by Sony, such as optical disk media, magnetic tape, laminate substrates, FeliCa cards and medical print media. The contemplated sale would cover SCID’s domestic and overseas operations relating to the manufacture and sale of chemical products. SCID’s manufacturing business of products sold by Sony, such as optical disk media, magnetic tape, laminate substrates, FeliCa cards and medical print media, will be outside of the scope of the contemplated sale to DBJ, and will continue to be retained and operated within the Sony group.
With their expertise in advanced material development, as well as their strengths in process technologies, SCID’s chemical products businesses are positioned to leverage growth opportunities such as increasing demand for adhesive and optical materials in the smartphone and tablet PC markets, for further expansion.
Sony is, however, focusing as a key initiative on realignment of its business portfolio and, as a result of such realignment effort, believes that this transaction would be the optimum solution for Sony, DBJ and the chemical products businesses themselves.
For DBJ, the acquisition is a part of its ongoing efforts to create values by assisting the growth strategy of Japanese companies, which has been DBJ’s focused initiative since 2010.
DBJ and Sony believe that the independence of these chemical products businesses, coupled with the utilization of DBJ’s domestic and international networks and other diverse business resources, will enable the chemical products businesses to achieve further growth and development in the future.
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