It’s all change at the OEM as Ricoh withdraws support from scandal-hit Indian subsidiary and transfers shares to Nisshinbo Holdings Inc.
Earlier this month The Recycler reported on a failed insolvency bid by a creditor of Ricoh India against the OEM’s Indian subsidiary. The National Company Law Tribunal rejected the bid and it was subsequently withdrawn by the creditor, Fourth Dimension Solutions.
However, in a recent announcement by the OEM, Ricoh revealed that it had “decided to change our assistance policy for our consolidated subsidiary” and anticipates “additional associated losses” adding that they “have revised the forecasted consolidated operating results for the full year ending 31 March 2018”.
The company went on to say that, “Until now, we have offered various forms of support to rebuild Ricoh India. However, in continued deficit, Ricoh India’s relationship with its major vendor deteriorated, so we have reevaluated the restructuring plan and our support for Ricoh India. As a result, under the current circumstances, we have made the decision not to provide any additional financial support going forward, in order to minimize the consolidated losses of the Ricoh Group. As Ricoh Company, Ltd. (referred to as Ricoh from here), we will make every effort to continue to provide services to our customers in India and maintain the quality of that service going forward.”
In the wake of the Ricoh India accounts scandal, the parent company has also opted to transfer “80 percent of the outstanding shares of Ricoh Electronic Devices Co, Ltd.,” to Nisshinbo Holdings Inc.” This decision was made at a Board of Directors meeting held today.
The transfer of the shares is slated to take place by approximately 1 March 2018, and as a result.
Ricoh’s press release about the transfer included the following information that “Nisshinbo Holdings […] provides a range of products such as general-purpose linear ICs and microwave equipment. Nisshinbo Holdings is working on growth strategies by allocating management resources selectively to automotive and super-smart society-related businesses under the slogan of taking challenges towards a new era of technological innovation and super-smart societies.”
The statement continued, “The share transfer has been agreed based on the decision that synergies generated by combining the expertise of the analog semiconductor business and the customer base developed and built by Nisshinbo Holdings and the analog semiconductor business of Ricoh Electronic Devices are effective for the sustainable growth and the increasing corporate value of Ricoh Electronic Devices in the future.”