(Company No. 637546-D)
NOTION VTEC ANNOUNCES NIKON CORPORATION, TOKYO, JAPAN AS CORPORATE STRATEGIC INVESTOR IN SHARE PLACEMENT
Nikon endorses the Notion Group by Buying a Substantial Stake
KLANG, Selangor – 19th January 2010 – Notion VTec Berhad (Main Market -Technology: Notion & Code 0083) is pleased today to announced that Notion group have placed 13,844,694 NVB shares representing 10% of outstanding shares prior to the new stock issue to Nikon Corporation ("Nikon") at an issue price of RM 2.44 per share.
The issue price of RM 2.44 which was priced on 6th January 2010 represents a discount of 10% of the weighted average market price for the five(5) market days immediately preceding the said price fixing date.
Nikon commands a high global standing in the manufacture and sale of camera-related products, such as digital cameras, as well as binoculars and other optical products for consumers, such as ophthalmic lenses. These items complement Nikon’s diverse array of industrial precision equipment that includes semiconductor-related equipment, IC and LCD steppers and scanners, microscopes and measuring instruments. Headquartered in Tokyo, the Nikon group recorded global sales of Japanese Yen 879.719 billion (equivalent to RM33.4 billion) for the year ended 31 March 2009.
The NVB group has been a major supplier of cam barrels (for the SLR cameras) to Nikon since 2005. The camera segment currently contributes approximately 43% of the NVB's group revenue. Having Nikon as a strategic investor should further strengthen the business relationship and create additional opportunities for both the groups. Nikon’s concern on the strong Japanese Yen is also seen as a strategic move by the Group to obtain essential supply of camera components from an efficient supplier such as Notion in non-Yen currencies.
The proceeds raised of approximately RM33.78 million will be used for the expansion plans in Thailand which will create an extra floor space of 200,000 sq ft to the group's facilities. The Notion Thailand plant will in the initial stage mainly cater for Nikon (Thailand) Co Ltd which has indicated that there will be additional orders for camera parts and also possible sub-assemblies in the near future.
“The investment by Nikon Corporation in the equity of Notion is indicative of the strong confidence placed on the Group and should not affect any other camera business that we have,” said Mr Thoo Chow Fah, Executive Chairman of Notion VTec Berhad.
“It is a sign that the Notion group is a key player in the supply chain management of a top notched SLR camera/Interchangeable Lens maker in the world. The camera segment will remain a key contributor to the Notion group’s revenue and profitability.”
(Company No. 637546-D)
“There have been discussions on training of Notion’s staff in Japan and possible future collaborative R&D in the optical and imaging segment which opens up further opportunities for skills development, technology and new business.”
About Notion Group
Notion is a large scale global supplier of high precision parts for the hard disk drive, SLR camera/Lens and Industrial/Automotive industries and amongst its customers are multi-national companies who are market leaders in these industries. Its strength is in product development, engineering, quality assurance, in-house tooling and jigs & fixtures capabilities. Notion will continue to invest in new technologies to stay in the forefront.
Notion was established in 1995 as a precision machining company. Please visit the Investor Relations section of the company website (http://www.notionvtec.com/} for additional investor and financial information.
Disclaimer Regarding Forward-looking Statements
This press release material contains forward-looking statements including expectations, judgment, plans, and strategies. The forward-looking statements are based on management’s assumptions and belief in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to: fluctuation of currency exchange rates, overall supply and customer demand, product development and production capabilities, performance of affiliated companies, and other risks and uncertainties. Notion undertakes no obligation to update forward-looking statements to reflect events or circumstances that occur after the date the statements are made.
Notion VTec Berhad, Lot 6123, Jalan Haji Salleh, Batu 5 ½ Jalan Meru, 41050,
Klang, Selangor DE. Tel:03-3361 5615 Fax:03-3392 8482