3 Honda Affiliated Parts Makers to Merge

10/18/96

Nikkei English News reported that Keihin Seiki Manufacturing Company, Honda Air and Device System Incorporated (Hadsys, Inc), and Denshi Giken Co Ltd, will merge to form Keihin Corporation, becoming Honda's largest subsidiary. The merger will be effective April 1 and will enable Keihin Seiki, which currently manufactures carburetors and fuel injectors, to develop and produce entire fuel supply systems.

The merger will basically dissolve Hadsys Inc., an automobile air conditioner compressor maker, and Denshi Giken Co., an electronic control system maker, into Keihin Seiki. Each Hadsys share will be exchanged for 3.9 shares of the post-merger Keihin, while each Denshi Giken share will be swapped for 13.5 new shares.

As of the end of March 1996, Honda was the major shareholder in each of the three partsmakers involved in the merger, with a 34.6% interest in Keihin Seiki, a 43.0% stake in Hadsys, and 65.5% of Denshi.

Paul Dever -- The Auto Channel