Highlights

Yageo Corporation has increased its offer for Shibaura Electronics for the fourth time, raising the price per share from 6635 yen to 7130 yen, marking a 7.5% increase. This strategic move, spurred by recent market dynamics, emphasizes Yageo's unwavering commitment to its acquisition strategy as it continues to push for the successful completion of this tender offer.

Sentiment Analysis

• The sentiment surrounding Yageo's fourth increase in the offer price is generally positive, highlighting strategic determination.
• Market participants view this as a smart move to grasp Shibaura's synergies.
• This move has increased the perceived value and potential successful integration post-acquisition.

Article Text

Passive component giant Yageo Corporation announced on the morning of the 23rd that it has raised its public tender offer price for Japanese NTC thermistor manufacturer Shibaura Electronics to 7130 yen per share, a 7.5% increase from the previous offer of 6635 yen. Within less than 48 hours, Yageo increased the purchase price from 6200 yen per share to 6635 yen. Yageo explained that this decision was made in response to recent market dynamics and to further promote the public tender process.

The newly announced price of 7130 yen represents a 65% premium over the initial offer price of 4300 yen per share. If Yageo successfully acquires 100% of Shibaura Electronics' approximately 15.2462 million shares, the total transaction value would increase from approximately 65.56 billion yen to about 108.7 billion yen.

Yageo emphasized that the decision demonstrates a firm commitment to realizing a shared vision with the Shibaura Electronics team and a deep belief in the synergies that this combination could generate. The acquisition underscores Shibaura's critical role in Yageo's expanding sensor business.

Yageo announced that the amendment statement for this tender offer price adjustment will be filed under the Financial Instruments and Exchange Act on August 25th. In accordance with Japanese regulations, the tender offer period will be extended to September 8th.

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