Toshiba increases its holding in Audiovox
Toshiba has increased its holding in the USA based Audiovox Communications Corp. (ACC) from 5% to 25%. Toshiba has held a 5% interest in ACC since 1999. As part of the transaction, ACC and Toshiba Corporation have entered into a distribution agreement under which ACC will, among other things, sell Toshiba Mobile Communications Company products for carrier channels, on an exclusive basis, in North and South America. In addition, the Toshiba brand name will be on certain wireless products sold by ACC.
Under the financial terms of the transaction, Toshiba Corporation has acquired, for aggregate consideration of US$32 million, additional shares of ACC bringing its current ownership to 25% and an US$8.1 million Subordinated Convertible Note of ACC.
Commenting on the announcement, John Shalam, Chairman, President and CEO of Audiovox Corporation said, "We began our partnership with Toshiba back in 1984 when together we were among the first companies to enter the cellular industry. Over the years that partnership has provided us with the technology that has helped us achieve a leadership position in the wireless industry. I am very pleased that Toshiba Corporation has chosen to increase its investment in our company. It is indicative of Toshiba's commitment to our marketing strategies and distribution. I believe that we are now stronger than ever and that this investment should allow us to compete more effectively in the fast-paced wireless market."
Berenson Minella & Company served as financial advisor to Audiovox Corporation and Goldman Sachs (Japan) Ltd. served as financial advisor to Toshiba Corporation in connection with this transaction.'