KEMET Corporation announced today that its joint venture, NEC TOKIN Corporation has completed its sale of its electro-mechanical devices (EMD) business to NTJ Holdings 1 Ltd. (NTJ). The closing of the EMD sale fulfills a significant closing condition to KEMET's purchase, through its wholly-owned subsidiary, KEMET Electronics Corporation (KEC), of the outstanding shares of NEC TOKIN from NEC Corporation (NEC) pursuant to the previously disclosed Stock Purchase Agreement between NEC and KEC. The closing of KEC's acquisition of NEC TOKIN is currently scheduled for on or about April 19, subject to the satisfactory completion of closing conditions.
NEC TOKINâ€™s sale of its EMD business to NTJ, a special purpose entity that is owned by funds managed or operated by Japan Industrial Partners, Inc. (JIP), was completed pursuant to a February 23 Master Sale and Purchase Agreement between NEC TOKIN, NTJ and JIP.
EMD manufactures signal and power relays and is primarily located in Calamba, Laguna, Philippines. The selling price was JPY 48.2 billion (approximately $441.3 million, based upon an April 13 exchange rate of 109.27) and is subject to certain working capital adjustments.
For details of the agreement among NEC TOKIN, NTJ Holdings 1 Ltd. and Japan Industrial Partners, and the agreement between NEC and KEMET, please refer to the Companyâ€™s Form 8-K filed on February 23, 2017 related to these transactions.