DENSO Announces Stock Purchase Proposal
In Accordance with the Provisions of Article 156 of the Corporation Act
Kariya (Japan) ― DENSO Corporation (the “Company”) announced that its board of directors agreed to present to shareholders a stock repurchase proposal (in accordance with Article 156 of the Corporation Act). This proposal will be presented on June 26, at the 84th Annual General Meeting of Shareholders.
1. Purpose of the stock purchase
The Company will purchase its stock after obtaining approval from the shareholders in accordance with Article 156 of the Corporation Act. The purchase of the stock will improve capital efficiency, and increase returns to shareholders. Also, the shareholder approval will enable the Company to adopt timely and flexible capital policy measures in response to changes in the business environment.
2. Information on the shares to be purchased by the Company
(1) Type of shares to be purchased: Common stock
(2) Total number of shares to be purchased: Up to 6,500,000 shares
(0.8 percent of total outstanding shares)
(3) Total cost of the purchase: Up to 32.5 billion yen
(4) Acquisition period:From June 27, 2007 to June 26, 2008
Following shareholder approval at the 84th Annual General Meeting of Shareholders on June 26, 2007, the Company will be authorized to purchase its stock until the completion of the 84th Annual General Meeting of Shareholders.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world’s major carmakers. Worldwide, the company employs approximately 112,000 people in 32 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2007 totaled US$30.6 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.