Thursday, February 14, 2013
Murata To Buy 2 Peers For Deeper Lineup
The leading manufacturer of electronic components is expected to spend as much as some 21 billion yen for the acquisitions as it seeks to broaden its product lineup.
The firm will launch a tender offer for shares in Toko, in which it is the top shareholder with a 16% stake, offering 300 yen per share. That represents a roughly 45% premium to the average stock price over the past six months. Murata intends to raise its interest to a maximum of 66.6% -- the highest allowed for Toko to remain listed. The firm will likely spend up to 17.4 billion yen for the purchase, which will take place between October and November after the deal clears antitrust scrutiny.
Murata will turn Tokyo Denpa, in which it already has a 32% interest, into a wholly owned subsidiary on Aug. 1 via a stock swap. One thousand Tokyo Denpa shares will be exchanged for 100 shares of Murata treasury stock carrying an estimated market value of around 3.7 billion yen. Tokyo Denpa will be delisted on July 29.
Toko is strong in coils used in the power supply units of smartphones and servers. Tokyo Denpa is known for its small quartz crystal units in smartphones. The two firms have combined sales of around 36 billion yen a year.
(The Nikkei, Feb. 14 morning edition)