Mon, 04/11/2016 - 00:00

KYOTO, Japan (April 11, 2016) (GLOBE NEWSWIRE) -- Nidec Corporation hereby announces, based on the resolution of the Board of Directors made on April 9, 2016, that the company will apply for voluntary delisting of its American Depositary Shares (ADSs) from the New York Stock Exchange (NYSE) and intends to file for the termination of registration of its ADSs under the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act), that the company will notify the NYSE on April 11, 2016 (Eastern Standard Time in the U.S.), and that the company will apply for voluntary delisting of its ADSs from the NYSE. The company listed its ADSs on the NYSE in September 2001 mainly to diversify its opportunities for fundraising and to raise the visibility of the NIDEC brand. Since then, the company has made efforts to enhance disclosures for shareholders and investors with the goal of deepening their understanding of the company, in addition to complying with the disclosure requirements of U.S. securities laws and regulations, providing consolidated financial statements in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and establishing internal controls in accordance with the Sarbanes-Oxley Act of 2002. Meanwhile, the external environment has significantly changed as indicated by the increases in trading volume of Japanese stocks through stock exchanges in Japan by overseas investors due to the internationalization of the Japanese financial and capital markets, as well as the narrowing of the gap between U.S. and Japanese disclosure standards with respect to financial reporting due to a series of amendments to Japanese laws and regulations and accounting standards. While the Company believes the initial objectives of the U.S. ADS listing were mainly achieved, it has judged that the continued listing on the NYSE is not economically justified, taking into account the market changes as stated above and the fact that the trading volume of its ADSs on the NYSE accounts for only a small fraction of the total trading volume of its shares. Therefore, the company has decided to apply for voluntary delisting of its ADSs from the NYSE and for termination of registration of its ADSs with the U.S. Securities and Exchange Commission (SEC) under the Exchange Act. The Company will maintain its listings on the Tokyo Stock Exchange. After the delisting of its ADSs from the NYSE, the company intends to maintain its American Depositary Receipt Program in the United States and anticipates that its ADSs will continue to be traded in the United States on the over-the-counter market. While the company’s reporting obligations under the Exchange Act (including the obligation to file annual reports on Form 20-F) will be terminated, the company will continue to disclose financial statements and other information, in English, on its website to ensure that its overseas shareholders and investors will continue to have access to appropriate information about the company.