Yageo extends tender offer deadline on Japan's firm as rival raises bid

Taipei, Aug. 19 (CNA) Taiwan's Yageo Corp., the world's third-largest maker of multilayer ceramic capacitors (MLCC), has extended the deadline of a tender offer to Aug. 28 for an acquisition of Japan-based Shibaura Electronics Co. after Japanese rival MinebeaMitsumi Inc. raised its bid.

In a statement on Monday, Yageo said that it has extended the tender offer deadline to Aug. 28 from Aug. 18, previously set, following MinebeaMitsum's move on Aug. 14 to raise its bid by 12.72 percent to 6,200 Japanese yen (approximately US$41.89) for one Shibaura share.

The latest offer by MinebeaMitsum matched Yageo's offer of 6,200 yen per share made on May 9, when the Taiwanese company launched a tender offer to acquire Shibaura, which Yageo described as a "globally recognized" negative temperature coefficient (NTC) thermistor maker.

Yageo said it is considering whether it will raise "the terms of the tender offer based on MinebeaMitsumi's changes to their tender offer conditions."

MinebeaMitsumi initially offered 4,500 yen per share in mid-April, pushing Shibaura's stock up and prompting Yageo to raise its bid from 4,300 yen per share in February to 5,400 yen per share in April.

Yageo's current bid of 6,200 yen per share was raised in May from the previous 5,400 yen per share due to MinebeaMitsumi's competition.

Yageo's announcement marked the seventh extension of the deadline of a tender offer to acquire Shibaura. The previous extensions largely aimed to comply with Japan's regulatory process. In Taiwan, Yageo has secured approval from the Ministry of Economic Affairs.

Last week, Yageo said it had arranged a visit for Shibaura representatives to its MLCC and electric resistance production lines in Taiwan for Tuesday, while another visit by Yageo's representatives to Shibaura's production site in Thailand has been scheduled for Sept. 4.

According to the Taiwanese company, the acquisition would boost Yageo's sensor business and help Shibaura leverage Yageo's global sales network and broad customer base to expand in the Americas and Europe.

Earlier this month, international news media reported that Japan's Ministry of Finance (MOF) had classified Shibaura as one of the country's core enterprises for national security. The reports suggested the classification list was released largely based on company responses to the MOF's questions, and that the ministry said it is the foreign suitor's responsibility to judge whether a potential deal requires a security review.

Founded in 1977, Yageo has sought growth through acquisitions, with the focus on high-end passive component development in recent years.

Among its previous acquisitions, Yageo bought U.S.-based Pulse Electronics Corp., for NT$22 billion (US$733 million) in 2018, cementing its MLCC status, before acquiring American counterpart Kemet Corp. for US$1.64 billion in 2000.

In 2023, Yageo brought French-based Schneider Electric's Telemecanique Sensors under its corporate umbrella in an all-cash acquisition of 686 million euros (US$802 million) to help strengthen its specialty electronics component business.