Yahoo, based in Taiwan, and Kemet, the US, announced that they have reached a definitive agreement. According to the agreement, the former Yahoo will acquire all the issued shares of the latter's common shares at a price of US$27.20 per share, valued in the United States. This includes $1.8 billion in net debt. They said the deal has been approved by their respective boards.
According to the announcement, the purchase price is 26% higher than the weighted average price (“VWAP”) of the last 30 trading days of Kemet, which is 37% higher than the VWAP premium of its past 90 trading days.
Founded in 1919 and headquartered in Fort Lauderdale, Florida, Kemet is a supplier of electronic components with operations worldwide, including 23 manufacturing facilities, with approximately 14,000 in 22 countries and territories in the Americas, Asia and Europe. Staff. Kemet's main products include tantalum capacitors, ceramic capacitors, magnets, sensors and actuators, as well as thin films and electrolytic capacitors. KEMET's products can be used in a variety of applications such as advanced automotive electronics, industrial applications, aerospace, medical and smart phones, cloud/network equipment, wireless communications, alternative energy and 5G technologies.
Together with Kemet, Yageo will be a one-stop supplier of passive electronic components, including polymers, germanium, ceramics, thin films and electrolytic capacitors, chip resistors, circuit protection and magnetics, leading combinations of sensors and actuators, two According to the company, all of these products are targeted at the entire end market segment. The combined company will expand its global reach and collaborate with long-term blue chip customers around the world through a combined 42 manufacturing plants and 14 dedicated R&D centers.
Pierre Chen, Chairman and CEO of Yageo, said: “Kemmet has excellent technical innovation capabilities and a good track record in integrating cross-border mergers and acquisitions. We have always appreciated their success and look forward to creating new opportunities for the combined company. The heritage of Kemet provides us with an excellent opportunity to combine our strengths to achieve synergies in product and technology products and geographic coverage that will enhance our consumer electronics and high-end automotive, industrial, Aviation, telecommunications and healthcare. I look forward to working with Kemet employees to drive future growth and bring greater value to our shareholders and customers."
KEMET CEO Jr. William M Lowe said: “We are pleased to reach this agreement with Yageo, which will provide our shareholders with immediate cash certainty at a premium. After a comprehensive process, the Kemet Board of Directors decided: This transaction In the best interests of Kemet shareholders, customers and employees, our team is committed to providing our customers with the widest selection of passive component technologies and services in the industry."
The two companies said that the merger of Yageo and Kemet will create an industry leader in the $28 to $32 billion passive component industry with a combined annual revenue of approximately $3 billion.
The acquisition of KEMET will expand Yageo's product portfolio and enhance Yageo's ability to provide one-stop product solutions for a range of market segments and mission-critical application services. It will expand its global business by expanding its operations in North America, Europe and Asia and expanding its capabilities for attractive, high-growth segments and applications. Through the combined synergy of Kemet and Tokin, Yageo will be able to leverage Kemet's business and success in Japan. It will expand Yageo's business to provide advanced products for automotive electronics, 5G networking and communications, robotics and automation, and industrial (including power). It will expand Kemet's operations in the Greater China region and the ASEAN region through the regional business and sales channels of the company.
The transaction is expected to be completed in the second half of 2020, subject to customary completion conditions and regulatory approvals required.
Upon completion of the transaction, Kemet will become a wholly-owned subsidiary of Yageo, and Kemet's common stock will no longer be listed on any open market.