On 29 September 2009 Sumitomo Metal Micro Devices Inc. (SMMD), a subsidiary of Sumitomo Metal Industries Ltd, and Hokuriku Electric Industry Co. Ltd agreed to make a capital and business alliance for the electronic module business and to establish a new company (80% owned by Hokuriku Electric and 20% by Sumitomo Metals). According to the agreement, Hokuriku Electric and SMMD have concluded a contract on the absorption-type corporate split, whereby the Systems Division of Hokuriku Electric will be split and succeeded to SMMD on 2 August 2010. SMMD is scheduled to change its company name to HDK Micro Devices on the same day. On the scheduled date of the absorption-type corporate split, Sumitomo Metals plans to purchase some treasury stock of Hokuriku Electric, corresponding to their purchase of SMMD’ shares in order to enhance mutual trust and cooperative relationship between Sumitomo Metals and Hokuriku Electric, and to make the deal more effective. Details remain to be determined.
