CDIB makes $61m tender offer for Taiwan's Jintex

CDIB has offered to pay NT$27.50 per share for all shares of Jintex, representing a premium to the closing price of NT$24.90 on March 22, the last day of trading prior to the disclosure of the offer. The price jumped following the announcement, opening at NT$27.24 on March 25. It has stayed around this level since, closing at NT$27.20 on March 27.

Jintex was founded in 1978 and specializes in the production of chemical agents for textiles and leather goods, with production facilities in Taiwan, mainland China, India, Indonesia, and Vietnam. The company was an early adopter of global sustainable manufacturing standards in Taiwan and seeks to maintain this lead as it pursues further expansion overseas.

The company reported revenue of NT$1.85 billion for the year ended December 2017, up 11.7% from the previous year. Over the same period net profit grew 6.7% to NT$135 million.

“Jintex is facing a number of challenges, including intensified competition from China and around the world, migration of business opportunities to other regions in Asia, as well as succession issues that are common for mid-sized companies in Taiwan,” said Steven Wu, a managing director at CDIB, in a statement. “We intend to leverage our industry expertise and extensive local knowledge to support the management, focusing on operational excellence and bringing Jintex to the next level of growth.”

The initial tender offer period will last until May 13, with the minimum threshold of success set at shareholders representing at least 51% of Jintex’s total outstanding shares.

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• Topics
• Greater China
• Buyouts
• Industrials
• Taiwan (China)
• CDIB Capital
• manufacturing