Synnex Technology International Corp (聯強), which distributes computers and handsets, yesterday said it would make a tender offer to buy out smaller local rival Bestcom Infotech Corp (群環) for NT$1.1 billion (US$32.9 million) to boost its operational efficiency.
Synnex holds a 40.85 percent stake in Bestcom and offered to buy the remaining 59.15 percent, or about 61.04 million common shares, in the electronics distributor at NT$18 per share, Synnex said in a statement.
The offering represents an 8.4 percent premium, compared with Bestcom’s closing price of NT$16.6 on the nation’s secondary Emerging Stock Market.
The combination “will help the company boost revenue and enhance technology services, as well as help explore new business opportunities to distribute more branded products,” Synnex spokesman Chang Wen-ying (張文英) told a news conference at the Taiwan Stock Exchange yesterday.
“The deal aims to reduce investment costs and to create operational synergy... As well as generate more revenue,” Chang said.
Bestcom made NT$11.7 billion in revenue last year, up 1.69 percent from NT$11.51 billion in 2014, according to the company’s filing with the Taiwan Stock Exchange.
Synnex generated NT$322.6 billion in revenue by distributing a wide range of electronics, including consumer electronics such as Apple Inc’s iPhone and Asustek Computer Inc’s (華碩) notebook computers at home and overseas.
The tender offer is to begin today and last until Monday next week.
The deal would be successful after Synnex buys 20.64 million shares, or a 20 percent stake, by the deadline, the company said.
The deal will require approval from the Fair Trade Commission, the company said.
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