(Corrects length of security review to seven months from five in paragraph 3)
TOKYO :Taiwan’s Yageo has succeeded in its $740 million unsolicited bid to buy Japan’s Shibaura Electronics as a majority of shareholders tendered to its bid of 7,130 yen ($48.32) per share, it said in a filing on Friday.
The bid’s success concludes a long running tussle that was closely watched by investors as a test case for Japan’s openness to unsolicited takeover bids as well as Japanese authorities’ willingness to permit foreign ownership in strategic industries.
Yageo passed a seven-month-long national security review in September, a process necessitated by Japan’s Foreign Exchange and Foreign Trade Act as Shibaura’s thermistor sensor business falls under the act’s “core” national security category.
Yageo had agreed to all conditions set forth by the Japanese government, a source familiar with the matter told Reuters without disclosing details.
Yageo, the world’s largest maker of chip resistors, outbid Japanese components maker Minebea Mitsumi, which had been brought in by Shibaura as a white knight and offered 6,200 yen per share.
