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Hitachi, NEC plan to cut Elpida holdings below 20%

Posted: 02 Sep 2005 ?? ?Print Version ?Bookmark and Share

Keywords:hitachi? elpida memory?

NEC Corp. and Hitachi Ltd, the parent companies of memory chip maker Elpida Memory Inc., said Tuesday (Aug. 30) they would each sell part of their Elpida holdings by Sept. 30, which would cut Elpida's close affiliation with the companies.

Hitachi plans to sell four million Elpida shares from its current holding of 22,999,980, which would lower its share in Elpida's equity from the present level of 23.8 percent to 19.7 percent. NEC plans to sell 9.6 million shares from its holding of 23,000,020, lowering its stake in Elpida from 23.8 percent to 13.9 percent.

As a consequence, Hitachi and NEC are both set to lower their participation in Elpida to below 20 percent, the minimum level of formal financial affiliation in Japan. From then on Elpida's financial results would not be reported within those of Hitachi and NEC.

"We have invested 57.5 billion yen (about $523 million) in Elpida, we aim at recouping a part of the investment by selling stock," said an Hitachi spokesman.

Hitachi and NEC both said there would be no change in their business relationship with Elpida in all areas, including product procurement.

- Yoshiko Hara

EE Times

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