Yageo to launch offer tender in mid-May to acquire Japan firm

Taipei, May 2 (CNA) Taiwan-based Yageo Corp., the world's third largest multi-layer ceramic capacitor (MLCC) supplier, intends to launch a new tender offer in mid-May for Japan's negative temperature coefficient (NTC) thermistor maker Shibaura Electronics Co.

In a statement released on Thursday, Yageo said it was reevaluating its bid of 5,400 Japanese yen (US$37.21) per share for the acquisition of Shibaura, made in April, after Japan-based MinebeaMitsumi Inc. said the same day that it was raising its bid to 5,500 yen from 4,500 yen.

MinebeaMitsumi announced a bid of 4,500 yen per share in mid-April to acquire Shibaura, which sent Shibaura's stock price higher, prompting Yageo to increase its offer to 5,400 yen on April 17, up about 25.6 percent from its original bid of 4,300 yen in February.

Yageo said the intense competition from MinebeaMitsumi for Shibaura showed that its decision to acquire Shibaura is forward looking as the Japanese acquisition target has good potential to grow and merging it with Yageo would create a higher value.

Yageo said it will continue to seek support from Shibaura's management and a special committee for its bid, and vowed to proceed with the acquisition in a fair and transparent manner to maximize the value for all Shibaura's stakeholders.

According to Yageo, the acquisition of Shibaura would help expand its sensor business and enable the Japanese company to take advantage of its global sales platform and broad customer base to market its products, in particular in the Americas and Europe.

Yageo said it hoped the acquisition of Shibaura could be completed by the third quarter of this year.

In recent years, Yageo has sought growth through acquisitions, with the focus on high-end passive component development.

Among its previous acquisitions, Yageo bought U.S.-based Pulse Electronics Corp., for NT$22 billion (US$710 million) in 2018, cementing its MLCC status.

In October 2022, Yageo announced plans to acquire French-based Schneider Electric's Telemecanique Sensors for an all-cash acquisition of 686 million euros (US$777 million) to help strengthen its specialty electronics component business, according to the company.