Elevator manufacturer Yungtay Engineering Co (永大機電) yesterday said it has received notification from Hitachi Ltd of a tender offer of up to NT$21.66 billion (US$702.5 million) to fully acquire its shares over the next month and a half.
Yungtay, which sells and distributes Hitachi elevators, said in a filing with the Taiwan Stock Exchange that the Japanese firm would commence the tender offer from today to March 7.
Hitachi, together with its wholly owned subsidiary Hitachi Building Systems Co, owns 11.7 percent of Yungtay’s total outstanding shares of 408.69 million.
It announced in October last year plans to acquire the rest of Yungtay’s stock via a public tender offer at NT$60 per share.
Hitachi said it has obtained approval from regulatory authorities for the public tender offer, according to a statement posted on the company’s Web site yesterday.
With the acquisition, Hitachi aims to strengthen its collaboration with Yungtay to boost its elevator and escalator business in China and Asia, as well as to accelerate the global expansion of its products and services.
Yungtay has been a business partner of Hitachi for more than 50 years, Hitachi said.
Hitachi last year signed a contract with Hsu Chou-li (許作立), a member of Yungtay’s founding family, which said that he would tender his 4.3 percent shareholding after Hitachi’s offer is filed and published.
Yungtay reported a net profit of NT$590 million in the first three quarters of last year, down 39.45 percent from a year earlier, due to non-operating losses. Earnings per share plunged to NT$1.44 from NT$2.38.
Last year, Yungtay’s revenue slid 10.9 percent to NT$1.16 billion from NT$1.3 billion in 2017.
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