MHI and NICHIYU sign agreements on absorption-type split and integration of forklift truck businesses
Mitsubishi Heavy Industries, Ltd. (MHI) and Nippon Yusoki Co., Ltd. (NICHIYU), in line with the basic agreement signed between the two companies on November 29, 2012, have signed an absorption-type split agreement and an integration agreement of their forklift truck operations following the passage today of related resolutions at the two companies' respective board of directors meetings, said in a press release.
Under the integration, the forklift truck operations of MHI will be spun off and integrated into NICHIYU. In conjunction with this move, the corporate name of the new integrated entity in charge of forklift business will be changed to Mitsubishi Nichiyu Forklift Co., Ltd. Hideaki Ninomiya, current president of NICHIYU, is slated to become president of the new integrated entity.
The corporate spinoff is subject to the receipt of approval by NICHIYU's shareholders at an extraordinary general shareholders meeting scheduled for March 14, as well as approval by the pertinent governmental agencies, etc. as stipulated by law.
Approval by MHI shareholders through a general shareholders meeting is not required because in this instance the company spinoff fulfills the requirements of a "simple absorption-type split" as stipulated in Article 784, Paragraph 3, of the Companies Act.
