Announcement of Proposed Acquisition of SMB Electric Switchgear Division by Fuji Electric Co., Ltd

Singapore, 27 November 2014 – An announcement was made in the Tokyo Stock Exchange that Fuji Electric Co., Ltd (“FE”) will acquire full ownership of SMB Electric Pte Ltd and its subsidiaries (“SMBE”) from Osaki Electric Co. Ltd (“Osaki Electric”).  The acquisition of all SMBE shares currently owned by Osaki Electric is expected to be completed by 29 December 2014.

This acquisition is part of FE’s plan to globalise and strengthen its overseas business through expansion into energy-related business with focus on industrial infrastructure and power electronics segments.  The takeover would enable FE to leverage on SMBE’s resources to further expand the business in Asia through the following approaches:

1. Expansion of sales channels and strengthening of engineering capabilities

To utilise SMBE’s sales channels in the Asia-Pacific region, and SMBE’s engineering capabilities to increase the number of industrial plant and system projects that integrate SMBE’s low-voltage (LV) switchboards with FE’s power electronics devices (such as Uninterruptible Power Systems (UPS), inverters, motors, molded and other transformers and measuring instruments).

2. Strengthening of product offering by medium voltage (MV) switchboard technology

FE will license the MV switchboard technology to SMBE for production and to integrate with their merchandise to develop new markets such as marine electrical equipment and offshore plants in the offshore sector.

The Management of SMBE would like to assure business partners and customers that all operational activities remain status-quo, with no changes to the current staffing structure.