JVC to Transfer Recordable Media Business to Taiyo Yuden
Tokyo, May 26, 2008 (Jiji Press) - Victor Co. of Japan <6792> will effectively transfer its recordable media business to Taiyo Yuden Co. <6976>.
JVC said Monday that it will spin off its recordable media business into a new company, Victor Advanced Media Co., in July. Taiyo Yuden will acquire an equity stake of 65 pct in the new firm in October.
Victor Advanced Media will receive optical disc supply from Taiyo Yuden for sale under the JVC brand. The new firm will also take over JVC's professional- and consumer-use videotape operations.
Recordable media prices have fallen steeply in Japan due to massive inflows of cheap foreign products, prompting many domestic makers to review their operations in the sector.
JVC's recordable media business scored an operating loss of 2.3 billion yen in fiscal 2007. Sales totaled 16.9 billion yen.
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