Elevator supplier Yungtay Engineering Co Ltd (永大) on Friday said that Japan’s Hitachi Group has proposed a tender offer to acquire the company’s common shares on the open market at NT$60 per share.
The public offer represented a premium of 16.28 percent compared with Yungtay’s closing price of NT$51.60 in Taipei trading.
The Taipei-based company said in a statement that it learned from Hitachi’s Web site that the Japanese firm plans to acquire 156,619,362 to 360,964,461 shares, the equivalent of about 38.32 to 88.32 percent of its issued and outstanding shares.
Yungtay’s honorary chairman Hsu Chou-li (許作立) has signed a contract with Hitachi saying that he will tender his 4.27 percent of shares after the proposed tender offer is filed and published, the firm said.
However, as Yungtay operates several subsidiaries in Shanghai, Tianjin and Sichuan Province in China, Hitachi would first need to obtain approval from Chinese authorities before initiating the offer, Yungtay said.
“If Hitachi is unable to obtain the merger clearance from the State Administration for Market Regulation of the People’s Republic of China, it will not proceed with the proposed tender offer,” Yungtay said in the statement.
Yungtay, established in 1966 with capital of NT$4.11 billion (US$132.6 million at the current exchange rate), is a leading elevator and escalator supplier in Taiwan and China, with 5,149 employees as of Dec. 31 last year.
It reported consolidated revenue of NT$16.75 billion last year, with operating profit of NT$1.48 billion and net profit of NT$1.13 billion. Earnings per share (EPS) were NT$2.76.
In the first nine months of this year, revenue was NT$11.44 billion, down 12.43 percent from the same period last year, while EPS hit NT$1.05 in the first half, compared with NT$1.74 a year earlier.
Hitachi has been a Yungtay partner for more than 50 years.
The Japanese group owns 11.7 percent of Yungtay’s shares — 7.8 percent of the shares are held by Hitachi Ltd and 3.9 percent by Hitachi Building Systems Co — and it intends to gain 100 percent ownership of the Taiwanese company with the offer, a statement posted on its Web site said.
The offer reflects the Japanese electronics conglomerate’s ambition to combine Yungtay’s cost competitiveness with Hitachi’s advanced technology to gain a solid footing in the global elevator and escalator market, the statement said.
“With the acquisition, Hitachi aims to enhance the elevator and escalator business in China and Asia by increasing the competitiveness of its products, and accelerating the global expansion of its product and service businesses,” it said.
Hitachi said it plans to proceed with the tender offer next year, with the completion of the deal subject to approvals from Taiwan’s Fair Trade Commission, the Investment Commission and all other regulatory authorities.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to