GS Yuasa Acquires Management Rights of Malaysian Joint Venture, Making It Consolidated Subsidiary
GS Yuasa Corporation (Tokyo Stock Exchange: 6674; “GS Yuasa”) announces that Siam GS Battery Co., Ltd. (headquarters: Samut Prakan Province, Thailand; “SGS”), its consolidated subsidiary, signed a share transfer agreement on May 29, 2015 to purchase a 40% stake in Yuasa Battery Malaysia (headquarters: Kedah State, Malaysia; “YBML”), a Malaysian joint venture). The agreement boosts GS Yuasa Group’s stake in YBML from 30% to 70% (GS Yuasa’s direct and indirect investment is 54%), giving YBML’s management rights to the group, and making it a consolidated subsidiary of GS Yuasa.
Since the establishment of YBML in 1979, GS Yuasa Group has been manufacturing and selling lead-acid storage batteries for automobiles and motorcycles in Malaysia.
During recent years, the competition in the Malaysian market has intensified due to acquisitions by competing companies and new entries, but the group aims to expand its market share by utilizing management resources and the expertise of SGS, which has a 50-year track record of manufacturing and selling the batteries in Thailand. Currently the group’s automotive lead-acid storage battery business has about 10%* market share in Malaysia and it plans to double the sales volume by 2018. The group also plans to maintain its leading market share, of about 35%*, it enjoys in the motorcycle lead-acid storage battery business.
GS Yuasa, in order to maintain its No.1 share in Asia and to further expand its business, will further deepen the collaboration between group facilities in the ASEAN region and continue to offer products and services not only in the automobile and motorcycle lead-acid storage batteries but also industrial stationary batteries that would satisfy the customers in the region.
*GS Yuasa estimates
|Siam GS Battery||0%||40%|
|1.Company name||Yuasa Battery Malaysia Sdn. Bhd.|
|2.Established||November 21, 1979|
|3.Location||Kedah State, Malaysia|
|4.Representative||Managing Director |
Tan Sri Dato’ Seri Hj Mohd Yussof Abdul Latiff
|5.Capitalization||5,000,000 Malaysian Ringgit|
|6.Business||Manufacture and distribution of lead-acid storage batteries forautomobiles and motorcycles|
|7.Employees||About 285 (as of the end of April 2015)|
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