End of An Era: Nabtesco and Harmonic Drive Dissolve Their Alliance - Event Lost, Pressure On

Yesterday, reducing gear maker Nabtesco Corp (6268 JP) announced that it would dissolve its cooperative relationship with the specialist maker of the smallest reducing gears Harmonic Drive Systems (6324 JP) which it had formed in 2008.

This means they will dissolve their capital relationship too. Nabtesco has heretofore owned 19.03% since well over a decade ago, and also owns share options which were purchased in 2018 when harmonic Drive last issued shares. There is a presentation.

This ends the "hopes" of many that eventually Nabtesco would buy out Harmonic Drive Systems.

Nabtesco sold half their stake in the company to Nomura, will keep the other half to sell at a later date, will sell the options back to HDS, and due to the fact that HDS will no longer be an equity-method affiliate, Nabtesco will report a significant gain in Q1, currently estimated at ¥130.6bn, and approximately ¥100bn after tax, if the shares are sold at ¥8,000/share. Nabtesco will also sell its 49% ownership in a JV in the US with HDS' US subsidiary.

There are some details worth looking at here. More below the fold.