A quick look around the just opened Flatbush, Brooklyn location of
Victor Company of Japan's (JVC) ongoing restructuring will result in the spin-off of the company's blank media business.
After the proposed spin-off, approved here by JVC's board on May 26, 65 percent of the shares in the new entity, Victor Advanced Media, will be transferred to Japanese parts and media supplier Taiyo Yuden. The new company will be based in Tokyo, according to a statement issued by JVC, here.
The planned effective date of the transaction is slated for July 1. Valuation of the shares to be transferred will be set on Oct. 1, according to a company release, and the payment will be made in cash.
The deal includes "research, development, manufacturing and sales of audio, visual and computer-related consumer and professional electronics, magnetic tapes, discs, etc.," and will include the Victor and JVC brands.
According to the board's resolution, JVC will transfer employees, including directors and auditors, to the new company, and JVC and its subsidiaries will continue to sell products marketed by Victor Advanced Media.
According to JVC's latest financial report, the blank media business reported an operating income loss of 2.325 billion yen (about $22.3 million) at the end of the fiscal year ending March 31. Current assets of the business to be spun off were reported to have a book value 4.743 billion yen (about $45.6 million) at that time.
Under JVC's current plan, the company is "reforming its business structure and management foundation by focusing on consumer electronics, professional systems and entertainment as its three future core businesses," according a statement by the board.
As of press time, JVC Company of America had no comment on the restructuring and how it might affect U.S. operations.