Yageo Corporation (TAIEX: 2327 TW) and Kemet Corporation of the United States (NYSE: KEM) announced today that they have reached a definitive agreement that Yageo will acquire all of the company’s common stocks in cash at a price of US$27.20 per share. The number of shares, the total transaction amount is approximately US$1.64 billion, which is approximately NT$50 billion. Based on the closing price of Kemay yesterday, the price premium of this public offer is approximately 18.2%, based on the last 30 trading days. In terms of weighted average stock price, the premium is about 26%. This transaction has been approved by the board of directors of both companies.
Founded in 1919, Kemei is a world-renowned leading supplier of high-end electronic components. It has a century of global brand awareness and is listed on the New York Stock Exchange (stock code: KEM). The company is headquartered in Florida, USA Fort Lauderdale has 23 production bases around the world, distributed in 22 countries in Asia, America and Europe, with a total of approximately 14,000 employees. Kemet’s main products are ceramic capacitors, tantalum capacitors, electromagnetic and sensing components, thin film and electrolytic components, etc. Kemet has been working in high-end automotive electronics, industrial specifications, aerospace and medical fields for a long time, and broadly deploys other industries such as With the development of advanced technologies such as smart phones, cloud network equipment, wireless communications, green energy and 5G equipment, Kemet's R&D, design and manufacturing capabilities are in the industry's leading position, with more than 1,600 trademarks and patents around the world.
The strategic objectives of Yageo’s acquisition of Kemei are: (1) increase its product portfolio and expand the service of providing customers with one-time purchase of electronic components, (2) expand Yageo’s business scale and market visibility in the United States and Europe, (3) Take advantage of the comprehensive effects of Kemei’s acquisition of TOKIN to allow Yageo to enter the high-standard-oriented Japanese market smoothly. (4) Continue to strengthen Yageo’s complete layout in niche markets such as automotive electronics, industrial specifications and 5G. (5) Through Yageo’s The deep cultivation layout and sales channels in the Greater China and Southeast Asian markets have further expanded the scale of Kemet's operations.
The combination of Yageo and Kemet will become a leader in the passive component industry. According to estimates based on the financial reports of the past 12 months (Note 1) that Yageo and Kemet have announced, the proposed combined revenue of the two parties will reach US$3 billion. Yuan, approximately NT$90 billion, and will further leverage each other's synergy in channel, technology, process and management in the future. Yageo and Kemei have completed many successful cases of cross-border acquisitions in the past. After the preparations of the two parties have been completed and approved by the competent authority, the acquisition is expected to be completed in the second half of 2020. Shareholders create higher value.