Shibaura backs Yageo's tender offer, deadline extended to Oct. 3

Taipei, Sept. 17 (CNA) Japan's Shibaura Electronics Co. has endorsed a tender offer by Taiwan's Yageo Corp., which again extended the deadline for the bid by 10 days to Oct. 3.

Yageo, the world's third-largest maker of multilayer ceramic capacitors (MLCC), said Tuesday it welcomed Shibaura's board decision to support the offer and recommend that shareholders tender their shares, calling the endorsement a "positive development."

Shibaura said the deal would create synergies by strengthening marketing in Europe, the United States and China, broadening its product portfolio, and expanding production with Yageo's capital investment to enhance its enterprise value.

Yageo added that the backing came after "meaningful engagement" and expressed confidence that the transaction would also benefit employees.

Earlier this month, Yageo secured foreign direct investment clearance from Japanese authorities, clearing a key hurdle for the acquisition. Yageo has described Shibaura as a "globally recognized" maker of negative temperature coefficient (NTC) thermistors.

Yageo launched its tender offer on May 9 at 6,200 yen (US$42.27) per share, after Japanese rival MinebeaMitsumi Inc. raised its bid to 5,500 yen. Since then, the Taiwanese firm has increased its offer several times, most recently to 7,130 yen (US$48.58) per share on Aug. 23, a significant premium over MinebeaMitsumi's competing bid.

Yageo said the new deadline was meant to give Shibaura shareholders sufficient time to assess the latest developments. The company has repeatedly extended the tender period, saying the latest deadline gives shareholders more time to evaluate the offer.

Founded in 1977, Yageo operates 61 production sites and 20 research and development centers in 35 countries. It has expanded aggressively through acquisitions, including U.S.-based Pulse Electronics in 2018, rival Kemet Corp. in 2020, and Schneider Electric's Telemecanique Sensors unit in 2023.