The parent company of Echo; Kioritz Corporation of Tokyo, Japan and Shindaiwa Corporation of Hiroshima, Japan, parent company of Shindaiwa Incorporated, have announced plans to form a joint holding company that will own and operate the two companies.
“After working closely together for nearly one year, we were pleased to uncover more opportunities than initially expected,” says Y. Asamoto, President and CEO of Shindaiwa Corporation. “We are certain the formation of this holding company will be good for Shindaiwa employees and business partners.”
Echo and Shindaiwa Incorporated entered into a shareholder alliance on May 21, 2007 and formed joint working committees to exchange ideas and to contemplate cooperation. In addition the companies have consolidated some operational matters such as purchasing, production, computer systems and logistics.
The joint holding company will be subject to the approval of shareholders at meetings to be held on June 27, 2008 and the compliance of all government and Tokyo Stock Exchange regulations and requirements. If approved, the existing shares of Kioritz and Shindaiwa stock will be exchanged for shares of the newly formed holding company circa December 1, 2008.
