Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.
April 5, 2012
- Aims to Expand Systems Solutions Business in Southeast Asia and China -
Tokyo, April 5, 2012 – Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that it has initiated take-over offer proceedings in Malaysia, having decided to acquire by take-over offer shares of eBworx Berhad (KLSE:EBWORX) , a Malaysia-headquartered financial IT solutions company. The share acquisition is subject to approval from regulatory authorities.
eBworx provides Internet and mobile banking systems, credit management systems and other services in the Asian region, mainly in Malaysia, Singapore, Indonesia, Thailand and China. It has a proven track record, most notably with major banks in Malaysia and Singapore. Through this take-over offer, Hitachi aims to expand its system solutions business in Southeast Asia and China, by gaining access to eBworx's extensive customer base, widely used software products, and powerful development base, including highly skilled human resources.
Hitachi is aiming to achieve further growth through global development of its Social Innovation Business, which provides social infrastructure underpinned by highly reliable and highly efficient information and telecommunications technologies. As part of this drive, Hitachi is forging ahead with various initiatives, such as forming alliances with global partners and expanding new businesses. In the Information & Telecommunication Systems Business, which is central to the Social Innovation Business, Hitachi is progressively expanding its business bases by efficiently acquiring and utilizing business resources obtained through mergers and acquisitions for further globalizing its operations. In the fast-growing Asian region, Hitachi is supporting the business development of Japanese companies in Asian markets and also developing services for local companies.
Like China, the Southeast Asia region, which includes Malaysia, Singapore, Thailand and Indonesia, is attracting attention as a market that is expected to continue growing based on significant economic growth. Japanese financial institutions are expected to increase their investment and expand their bases in this region. Local financial institutions, meanwhile, are expected to actively expand business within Southeast Asia, which aims to become the main international financial hub in Asia. They will also invest in advanced IT systems for supporting enhanced customer services.
By acquiring eBworx with its extensive track record and established reputation with leading banks in Southeast Asia and China through the tender offer announced today, Hitachi will acquire a business platform for providing comprehensive system solutions to financial institutions. These solutions will include the design, development, integration and maintenance of business software. When providing services after acquiring eBworx, Hitachi will also leverage the Hitachi Group's global network, centered around Hitachi Consulting Corporation, which offers IT consulting services globally, including in Asia. In this way, Hitachi aims to expand its system solutions business further in Southeast Asia and China by establishing a one-stop service framework targeting Japanese and local financial institutions that are increasing their investments in global operations, especially in Asia.
Moving forward, Hitachi will push ahead with initiatives to strengthen business in the global marketplace, with the goal of increasing overseas revenues in the Information & Telecommunication Systems Business as a whole in the Hitachi Group from approximately 390.0 billion yen in fiscal 2010 to 800.0 billion yen in fiscal 2015.
| Company name | eBworx Berhad [Listed on the Stock Exchange of Malaysia (Ace Market) in November 2003] |
|---|---|
| Established | May 1998 |
| Headquarters | Petaling Jaya Selangor, Malaysia |
| Business location | Malaysia, Singapore, Thailand, Indonesia and China |
| Share capital | 20,466,530 Malaysian ringgit (approximately 0.55 billion yen)*1 [as of December 31, 2011] |
| Business | eBworx is focused in providing solutions in the financial services sector.
|
| Representative | CEO: Tan Suan Fong |
| Recent business performance | Revenue: 51,813 thousand Malaysian ringgit (approximately 1.40 billion yen)*1 [For the year ended December 2011, unaudited] |
| Website | http://www.ebworx.com |
| Stock purchase method | Voluntary take-over offer |
|---|---|
| Offeror | Hitachi, Ltd. |
| Offer price | 0.90 Malaysian ringgit per share |
| Issued number of shares | 193,229,100 (excluding treasury shares) |
| Acceptance condition | 85% of total voting shares (excluding treasury shares) |
| Total amount (100% acquisition) |
173,906,190 Malaysian ringgit (approximately 4.70 billion yen)*1 |
| Offer period | From April 26, 2012 to May 17, 2012 (Planned)*2 |
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2010 (ended March 31, 2011) consolidated revenues totaled 9,315 billion yen ($112.2 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
