Hong-Kong-based Hanny Magnetics Ltd, the parent company of floppy disk maker Dysan Magnetics, is attempting to increase its share of business in the Far East. Li Ka-shing, the so-called richest man in Hong Kong and owner of Cheung Kong operations, a conglomerate involved in anything from satellite television to retail, has taken an option on 33.3m of Hanny shares. Valued at UKP5m, they amount to some 9.5% of Hanny’s issue share capital. The partnership is to lead to Dysan brand-name products being sold through Cheung Kong’s Hutchison Whampoa Ltd retail chain, which has a presence in many of the Far Eastern countries. Hanny is a $150m manufacturer of personal computer floppy disks, data media products, such as data tape cartridges, digital audio tape and magneto-optics equipment as well as consumer items, such as VHS video and audio tape. Dysan acts as the worldwide distributor and marketing arm of Hanny, which claims to control a 15% to 20% share of the floppy disk marketplace. However, Dysan actually started life in 1978 as an independent manufacturer of personal computer disks. It was acquired by Xidex Inc in 1986, a company that at the time was looking to expand, but in 1989 ended up being bought out and carved up by Indianapolis, Indiana-based Anacomp Inc. By March 1990, Dysan had changed hands again to become part of the Hanny Magnetics group. Hanny was interested not only in Dysan’s established reputation in the floppy disk marketplace, but also in using its knowledge of Western markets to exploit existing distribution channels there. Dysan Magnetic’s European business is based in Reading, Berks and looks after sales in the Middle East, Africa, Europe and the UK, while Dysan International is based in Milpitas, California and operates in the US market.
