Tokyo: Japan's Shibaura Electronics Co. has endorsed a tender offer by Taiwan's Yageo Corp., which has once again extended the deadline for the bid by 10 days to October 3.
According to Focus Taiwan, Yageo, the world's third-largest maker of multilayer ceramic capacitors (MLCC), announced on Tuesday that it welcomed Shibaura's board decision to support the offer and recommend that shareholders tender their shares, viewing the endorsement as a "positive development."
Shibaura stated that the deal would foster synergies by enhancing marketing efforts in Europe, the United States, and China, broadening its product portfolio, and expanding production capabilities through Yageo's capital investment to boost enterprise value. Yageo expressed that the backing resulted from "meaningful engagement" and conveyed confidence that the transaction would also benefit employees.
Earlier this month, Yageo obtained foreign direct investment clearance from Japanese authorities, overcoming a significant hurdle for the acquisition. Yageo has described Shibaura as a "globally recognized" manufacturer of negative temperature coefficient (NTC) thermistors.
Yageo initiated its tender offer on May 9 at 6,200 yen (US$42.27) per share, following a competing bid from Japanese rival MinebeaMitsumi Inc. at 5,500 yen. The Taiwanese firm has since raised its offer several times, most recently to 7,130 yen (US$48.58) per share on August 23, presenting a substantial premium over MinebeaMitsumi's proposal.
Yageo indicated that the new deadline aims to provide Shibaura shareholders with ample time to consider the latest developments. The company has extended the tender period multiple times, asserting that the latest deadline allows shareholders additional time to evaluate the offer.
Founded in 1977, Yageo operates 61 production sites and 20 research and development centers across 35 countries. The company has expanded assertively through acquisitions, including U.S.-based Pulse Electronics in 2018, rival Kemet Corp. in 2020, and Schneider Electric's Telemecanique Sensors unit in 2023.