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Toyota's Automotive Prismatic Battery Unit To Split-off Under Panasonic JV Deal

Japan's Toyota Motor Corp. (TYT.L,TM) and Panasonic Corp. (PCRFY.PK,PCRFF.PK) announced Monday that the two companies have executed a business integration contract and a joint venture contract to establish a new automotive prismatic batteries company.

In accordance with the business integration contract, Toyota will split its automotive battery design development and component development business by way of an absorption-type company split to the joint venture, which was established by Panasonic's subsidiary Panasonic Equity Management Japan G.K. or PEMJ.

Toyota will split the company, and the joint venture will be the successor company of the relevant business split-off.

Toyota board also approved the acquisition of stocks in the joint venture from PEMJ.

Toyota will be allocated rights to receive 231,984 common stock in the joint venture as consideration for its contribution to the company split.

On the effective date of the company split agreement, Toyota will receive from PEMJ 278,016 shares at the price of 65.09 billion yen resulting in an equity participation ratio of 51% on Toyota's part, and 49% on PEMJ's part at the effective date.

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