Yageo Corp (國巨), the world’s No. 3 multilayer ceramic capacitor supplier, on Tuesday night said that it had secured support from Shibaura Electronics Co’s management team for a takeover bid, clearing a major hurdle to clinching the NT$22.83 billion (US$759.4 million) deal later this year.
It came after Yageo early this month obtained foreign direct investment clearance for the tender offer from authorities including the Japanese Ministry of Economy, Trade and Industry under the Foreign Exchange and Foreign Trade Act. That is the sole regulatory obstacle for closing the deal.
Yageo has again extended its tender offer by 10 business days to Oct. 3 in accordance with Japanese regulations, allowing shareholders enough time to respond to its bid, the company said.
Photo: Lee Wen-yee, Reuters
Yageo shares yesterday surged 4.35 percent to close at NT$156 in Taipei.
“Yageo would like to express the most sincere and genuine appreciation to Shibaura’s leadership team, board of directors and special committee, who have now given support to Yageo’s tender offer and recommended its shareholders tender to Yageo,” the company said in a statement.
Shibaura in its statement said it agreed with Yageo’s proposal and believed that the combination with Yageo would help enhance Shibaura’s sales in Europe, the US and China, as well as broaden the company’s product portfolios under the financial support of Yageo.
The deal would also help uphold the company’s corporate values, it said.
Shibaura’s support for the deal followed high-ranking executives’ meeting in Taipei in July and their visits to Yageo’s manufacturing facilities in Kaohsiung and Thailand, it said.
Yageo launched the bid in May with an aim of fully acquiring Shibaura, one of the world’s leading manufacturers of negative temperature coefficient thermistors to expand its sensor business.
Since then, the company has extended the deadline of the tender offer several times and raised the bidding price to ￥7,130 per share, 15 percent higher than ￥6,200 from rival MinebeaMitsumi Inc.
Yageo aims to buy all 15.25 million Shibaura shares in cash.
The tender offer would succeed if it meets the minimum acquisition of 7.62 million shares, or about 50 percent, the company said.
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