Taipei: Yageo Corp. said it secured foreign direct investment (FDI) clearance from Japanese authorities for its tender offer to acquire Shibaura Electronics Co.
According to Focus Taiwan, Yageo said the FDI clearance was granted by authorities including Japan’s Ministry of Economy, Trade and Industry under the Foreign Exchange and Foreign Trade Act and was the only regulatory closing condition related to the tender offer. The company said the approval clears the way to complete the deal to acquire Shibaura, a maker of negative temperature coefficient (NTC) thermistors.
Yageo said the regulatory approval reflected, in part, the attractiveness of its acquisition price of 7,130 Japanese yen (US$47.94) per Shibaura share, which represents a premium over the bid of a competing tender offer. Yageo launched the tender offer on May 9 at 6,200 yen per share, which it said was a 14.8 percent increase from a prior offer of 5,400 yen.
Yageo said that after MinebeaMitsumi Inc. raised its bid to 5,500 yen from 4,500 yen, Yageo raised its offer to 6,635 yen on Aug. 21 and to 7,130 yen on Aug. 23. To comply with Japan’s regulatory process, Yageo has extended the tender offer deadline several times and on Tuesday extended the deadline to Sept. 18 from Sept. 8. Yageo said completion of the tender offer remained scheduled for the end of the third quarter.
Yageo said the FDI clearance strengthened its confidence in the deal and eased concerns raised by a MinebeaMitsumi statement that questioned the possibility of Yageo’s tender offer being successfully completed. Yageo said it is committed to protecting Shibaura’s core technologies while leveraging its global sales network and client connections to market Shibaura’s products worldwide.
Yageo pledged to ensure a fair and transparent tender process and to disclose all legally permissible information to Shibaura’s shareholders so they can make independent decisions. Yageo said it believes it can provide Shibaura’s employees with a global platform for development and opportunities.
Additional details:
Yageo was founded in 1977 and has pursued growth through acquisitions, focusing on passive component development.
Yageo bought Pulse Electronics Corp. for NT$22 billion (US$715 million) in 2018.
Yageo acquired Kemet Corp. for US$1.64 billion in 2020.
In 2023, Yageo acquired Telemecanique Sensors from Schneider Electric in an all-cash deal for 686 million euros (US$795 million).
Yageo said the 7,130 yen per share offer equals US$47.94 per Shibaura share.
Yageo said the FDI clearance was granted under the Foreign Exchange and Foreign Trade Act by authorities including Japan’s Ministry of Economy, Trade and Industry.
Yageo said the tender offer deadline was extended to Sept. 18 from Sept. 8 and that completion remains scheduled for the end of the third quarter.