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Hitachi to takeover in-car entertainment systems provider

Posted: 13 Oct 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Hitachi? in-car? acquisition? Clarion? in-car entertainment?

Hitachi Ltd said it plans to make automotive entertainment systems provider Clarion Co. Ltd, a subsidiary through a takeover bid. Clarion's board of directors has reportedly expressed approval of the takeover bid at its meeting Wednesday.

The two companies have signed a basic agreement that calls for Hitachi to pay about $1.92 per share for more than 100 million shares of Clarion common stocka total investment of around $192 millioncommencing Oct. 25.

Hitachi, which already owns more than 14 percent of Clarion, will hold a controlling stake of more than 50 percent of the company following the takeover bid, the company said. Hitachi said the take over bid price includes a premium of roughly 33 percent per share over Clarion's common stock price as of Oct. 10.

Hitachi said it plans to leverage Clarion's the planning and development of in-vehicle entertainment systems such as audio-visual and navigation systems and devices, as well as in marketing capabilities that have been applied in the aftermarket and with automakers around the world, including Japan.

Following the completion of the takeover bid, Hitachi said in-vehicle information systems vendor Xanavi Informatics Corp., a wholly owned Hitachi subsidiary, would become a wholly owned subsidiary of Clarion.

Clarion posted fiscal 2005 revenue of about $231 million, Hitachi said.

- Dylan McGrath
EE Times

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