Taiwan’s Yageo Corp. plans to launch a $440 million tender offer for Shibaura Electronics Co., pressing ahead with an unsolicited takeover bid after being repeatedly rebuffed by the Japanese sensor maker’s management.
The Taiwanese electronic components maker will offer 4,300 yen per share to acquire Shibaura Electronics, representing a 37% premium to the target’s last closing price. The tender offer is scheduled to begin May 7 and aims to acquire a minimum 50.01% stake.
Yageo has unsuccessfully sought meetings with Shibaura’s management since October to discuss a potential deal. The target company has declined to engage without signing a non-disclosure agreement that would restrict Yageo from pursuing an acquisition.
The proposed acquisition would help Yageo expand its sensor business, which generated over $400 million in revenue last year. Shibaura specializes in thermistors used in temperature sensing applications for automotive and industrial markets.
“We can amplify Shibaura’s customer reach through access to our global distribution platform,” Yageo said in its statement. The company plans to maintain Shibaura’s manufacturing facilities and R&D capabilities in Japan.
The deal requires regulatory approvals in Japan and Taiwan. Yageo said it expects to complete these procedures by late May 2025. The tender offer will be followed by steps to make Shibaura a wholly-owned subsidiary.
Shibaura Electronics shares rose 2.1% to 3,140 yen at Wednesday’s close in Tokyo before the announcement, giving it a market value of about $320 million.
