Tue, May 24, 2011 - Page 12 News List

FTC OKs Orion’s buyout of Yageo

By Jason Tan  /  Staff Reporter

Private equity fund Orion Investment Co (遨睿投資) yesterday said its planned buyout of Yageo Corp (國巨) for US$1.6 billion has received the green light from the Fair Trade Commission (FTC), and that it is waiting for approval from the Investment Commission.

As of yesterday, Orion had purchased 1.06 billion shares, or 60.14 percent, of Yageo, Taiwan’s biggest passive components maker, or 37 percent more than the minimum threshold of the buyout.

However, because it has yet to receive the go-ahead from the Investment Commission, Orion said in a statement that it was extending its tender offer period to June 24.

Regulations require that buyouts be completed within 50 days of their announcement, though they can be extended, as most routinely are. The buyout was announced on April 7.

The Investment Commission is seeking additional paperwork from Orion, which is jointly held by Yageo founder Pierre Chen (陳泰銘) and the US investment fund Kohlberg Kravis Roberts & Co LP (KKR).

Last month, KKR partner Julian Wolhardt said Taiwanese acquisition deals were seldom approved within the required 50-day period, adding that communications with the regulator were “smooth.”

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