Taipei: Taiwan-based Yageo Corp., recognized as the world's third-largest supplier of multi-layer ceramic capacitors (MLCC), is set to initiate a new tender offer in mid-May for Japan's Shibaura Electronics Co., a maker of negative temperature coefficient (NTC) thermistors.
According to Focus Taiwan, Yageo disclosed in a statement on Thursday that it is reassessing its bid of 5,400 Japanese yen (US$37.21) per share for the acquisition of Shibaura, following an announcement by MinebeaMitsumi Inc. The Japan-based company declared on the same day that it was increasing its bid to 5,500 yen from the previous offer of 4,500 yen.
MinebeaMitsumi's mid-April bid of 4,500 yen per share for Shibaura had initially driven up Shibaura's stock price, prompting Yageo to enhance its offer to 5,400 yen on April 17. This was an increase of approximately 25.6 percent from its original proposition of 4,300 yen made in February.
Yageo stated that the intense competition from MinebeaMitsumi for Shibaura underscores the strategic foresight of its acquisition decision, as Shibaura presents significant growth potential. Yageo believes that merging with Shibaura would generate greater value.
Yageo affirmed its commitment to seeking support from Shibaura's management and a special committee, pledging to conduct the acquisition process in a fair and transparent manner to maximize value for all stakeholders involved with Shibaura.
According to Yageo, acquiring Shibaura would facilitate the expansion of its sensor business while enabling Shibaura to leverage Yageo's extensive global sales network and customer base, particularly targeting markets in the Americas and Europe.
Yageo expressed its goal to finalize the acquisition of Shibaura by the third quarter of this year. The company has pursued growth through acquisitions in recent years, with a focus on developing high-end passive components.
In past acquisitions, Yageo purchased U.S.-based Pulse Electronics Corp. for NT$22 billion (US$710 million) in 2018, reinforcing its MLCC leadership. In October 2022, Yageo announced plans to acquire French-based Schneider Electric's Telemecanique Sensors for an all-cash deal of 686 million euros (US$777 million) to bolster its specialty electronics component business, according to the company.