KKR and partner announce bid for Yageo
KKR Asia has teamed up with, Pierre Chen, chairman of Taiwan’s Yageo Corporation to launch takeover bid that will see Chen’s electronic-components manufacturer privatized. The deal values the target at $1.6 billion. The transaction will be conducted by Orion Investment Co., Ltd., a Taiwanese company owned by KKR and Chen.
The offer price represents a premium of approximately 14% over the last closing price of Yageo shares on the Taiwan Stock Exchange, and is equal to the highest closing price the e stock has reached since July 2004. Currently, Chen, his family and funds managed by KKR, collectively control approximately 34.3% of the fully diluted shares outstanding of Yageo following conversion of KKR’s convertible bonds and exercise of all vested employee stock options.
Upon completion of the tender offer, Orion is expected to hold over 50% of the fully diluted shares outstanding of Yageo.
In a statement, Chen said: “We feel now is the time to take Yageo to the next level. From a long term perspective, the new shareholding structure will enable investments in accelerated high end product development and deeper penetration into western markets, which will complete our transformation into a global leader across our focus products.”
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