The Sony Group expects that the acquisition of Suzhou Epson will enhance the speed and efficiency of business operations of the Sony Group's small- and medium-sized TFT LCD production through a cohesive operation, which includes integrating manufacturing operations of TFT LCDs from back-end and touch panel assembly processes undertaken by Suzhou Epson to the front-end processes undertaken at Sony Mobile Display Corporation's Tottori Plant located in Japan and other facilities. Through the acquisition of Suzhou Epson's production capabilities for touch panels and LCDs for in-car units and smartphones, Sony aims to further strengthen its TFT LCD production capacity to meet increased market demand.
The Sony Group has been utilizing Suzhou Epson for the back-end process of small- and medium-sized TFT LCD production. The purchase price of this contemplated acquisition is 775 million Yuan ($118.2123 million), which was determined primarily based on Suzhou Epson's inventories corresponding to the orders already placed by the Sony Group as well as the cash and deposits owned by Suzhou Epson.
Epson and Sony plan to complete the transfer of all Suzhou Epson equity from the Epson Group to Sony (China) Limited in the first half of the fiscal year ending March 31, 2012, subject to the receipt of any necessary government approval.