Pioneer, Onkyo Update Tie-Up
Pioneer and Onkyo have announced the latest update to their corporate tie-up, which was first announced in June and revised in September.
The two companies will "maximize the business synergy while maintaining their respective brands and will continue introducing new ways to enjoy music and launching new products into the market that would further enhance their brands."
According to the companies:
As a result of intensive consultation held pursuant to the Basic Agreement and by the resolution of Pioneer’s board of directors meeting held today, Pioneer agreed with Onkyo to sign a capital and business alliance agreement (hereinafter the “Capital and Business Alliance Agreement”) to integrate Pioneer Group’s home AV business, phone business and headphone-related business (hereinafter collectively referred to as “Pioneer’s Business”) and Onkyo’s AV business (hereinafter the “Integration”), for Pioneer to subscribe to the new shares of common stock of Onkyo to be issued through third- party allotment (hereinafter the “Third-Party Allotment”), for Pioneer to sell to Onkyo all of the shares in Pioneer Home Electronics Corporation, a wholly-owned subsidiary of Pioneer, (hereinafter “PHE”) (hereinafter the “PHE Share Transfer”), for Pioneer to transfer Pioneer’s Business operated by some of its overseas subsidiaries (hereinafter “Pioneer’s Overseas Business”) to the Onkyo Group (hereinafter “Pioneer’s Overseas Business Transfer”), to succeed Pioneer’s headphone-related business to PHE through an absorption-type company split (hereinafter “Pioneer’s Headphone-Related Business Split”) prior to the PHE Share Transfer and Pioneer’s Overseas Business Transfer, and for PHE and Onkyo to execute, between themselves, a company split agreement to succeed the AV business operated by Onkyo to PHE through an absorption-type company split (the “Onkyo’s AV Business Split).
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