YAGEO Corporation (Taiwan Stock Exchange: 2327, hereinafter “YAGEO”), a Taiwan-based electronic parts maker, announced on May 8, 2025 that it had increased its public tender offer (TOB) price for Japanese Shibaura Electronics Co., Ltd. (Tokyo Stock Exchange: 6957, hereinafter “Shibaura Electronics”) by 44.19% from the 1st offer price of 4,300 yen to 6,200 yen, and that it would officially launch the acquisition on the following May 9. This follows a move by MinebeaMitsumi Inc. (Tokyo Stock Exchange: 6479, hereinafter “MinebeaMitsumi”) which had raised its competing TOB price to ¥5,500 on May 1. YAGEO's latest offer surpasses that figure, intensifying the bidding war. YAGEO emphasizes that it can achieve "superior growth and value creation" by combining Shibaura’s NTC thermistor technology with YAGEO’s global sales network and broad industrial customer base.
In summary, YAGEO is aggressively responding to competition from MinebeaMitsumi, reinforcing its growth strategy by highlighting potential synergies. Market observers are closely watching the TOB outcome and the future of the combined companies’ product development and market strategies.
Purpose of M&A
YAGEO has sales operations across Asia, Europe, and the Americas, holding a top share in the global passive components market. The company offers a wide range of passive components such as resistors, capacitors, and inductors, serving various industries.
Goals and Expected Synergies:
- Technology Synergy: The integration of Shibaura’s temperature sensor (NTC thermistor) technology with YAGEO’s manufacturing and sourcing capabilities is expected to accelerate the development of high-value-added products.
- Enhanced Market Competitiveness: The combined company would benefit from an expanded product lineup and optimized costs, improving overall competitiveness.
- Maximizing Corporate Value: YAGEO has stated its intent to maximize corporate value for all stakeholders through a transparent and fair acquisition process.
Acquisition Terms
Raised Price: YAGEO initially proposed ¥4,300 per share (Feb 5, 2025), later increasing it to ¥5,400 (Apr 17), and then again to ¥6,200 (May 8).
Cash Offer: The TOB is structured as a cash tender; no stock swap is involved.
Schedule
Feb 5, 2025: YAGEO’s board approves the TOB for Shibaura Electronics.
Apr 17, 2025: TOB price increased from ¥4,300 to ¥5,400.
May 1, 2025: MinebeaMitsumi raises its competing TOB price to ¥5,500; YAGEO announces a reevaluation of its offer.
May 8, 2025: YAGEO raises its TOB price to ¥6,200 and announces the offer will begin on May 9.
May 9, 2025: Official launch date of YAGEO’s new TOB.
Mid-May 2025 (Expected): YAGEO is expected to finalize conditions and complete the tender.
Raised Price: YAGEO initially proposed ¥4,300 per share (Feb 5, 2025), later increasing it to ¥5,400 (Apr 17), and then again to ¥6,200 (May 8).
Cash Offer: The TOB is structured as a cash tender; no stock swap is involved.
Schedule
Feb 5, 2025: YAGEO’s board approves the TOB for Shibaura Electronics.
Apr 17, 2025: TOB price increased from ¥4,300 to ¥5,400.
May 1, 2025: MinebeaMitsumi raises its competing TOB price to ¥5,500; YAGEO announces a reevaluation of its offer.
May 8, 2025: YAGEO raises its TOB price to ¥6,200 and announces the offer will begin on May 9.
May 9, 2025: Official launch date of YAGEO’s new TOB.
Mid-May 2025 (Expected): YAGEO is expected to finalize conditions and complete the tender.
