Taiwan’s Yageo Corp. is raising its offer for Shibaura Electronics Co. to ¥5,400 ($35.20) per share, escalating a cross-border takeover battle for the Japanese maker of high-precision temperature sensors, according to people familiar with the matter.
The increased bid counters a white knight offer of ¥4,500 from Japanese parts supplier MinebeaMitsumi Inc. announced on April 10. Yageo’s original unsolicited February proposal valued Shibaura at ¥4,300 per share.
The higher bid demonstrates Yageo’s determination to acquire Shibaura’s thermistor technology, which is crucial for electric vehicles, industrial robots, and wind turbines. Shibaura commands a 13.5% global market share and was the first company to develop thermistors capable of measuring temperatures up to 1,000°C.
Shibaura has opposed Yageo’s acquisition attempts, instead endorsing MinebeaMitsumi’s counter-offer in what appears to be a strategy to keep the technology under Japanese ownership.
Yageo founder and chairman Pierre Chen has stated the company intends to proceed with its tender offer beginning May 7, with or without Shibaura’s consent. The Taiwanese firm maintains it is “the optimal partner to maximize Shibaura’s growth potential.”
Shibaura shares closed at ¥4,770 on Thursday, suggesting investors anticipate the bidding war may escalate further. The focus now shifts to whether MinebeaMitsumi will counter with a higher offer to retain the prized sensor technology in Japanese hands.
