At the Board of Directors' meeting held today, Victor Company of Japan, Limited (JVC) agreed to spin off its recordable media business to a new company, VictorAdvanced Media Co., Ltd. and to transfer a portion of the new company's shares to Taiyo Yuden Co., Ltd.
JVC decided to spin-off this business to the new company Victor Advanced Media Co., Ltd. and transfer a portion of the shares of this company to Taiyo Yuden Co., Ltd.
The new company is expected to start operations on July 1, 2008. The company with a 100% capital investment will carry out the development, manufacturing, and sales of Victor and JVC brand recording media (tapes and optical discs) and other incidental operations. JVC will subsequently transfer 65% of the shares of the new company to Taiyo Yuden Co., Ltd.
The decision is part of JVC's new Medium-term Management Plan. JVC is currently reforming its business structure and management foundation by focusing on consumer electronics, professional systems, and entertainment as its three future core businesses. These reforms include
concentrated efforts to strengthen these core businesses, as well as fundamental review of other businesses.