Luxshare Precision, a major Chinese EMS company regarded as Apple's key partner, has launched a TOB for SEED, a long-established Japanese contact lens manufacturer. The TOB price is ¥795, representing a premium of approximately 50% over the previous day's closing price. The ultimate aim is to delist the company following a share consolidation.
Luxshare Precision, a rapidly growing Chinese EMS giant, has announced a tender offer for SEED, which is listed on the TSE Standard market. The TOB price is ¥795, representing a premium of approximately 47.8% over the recent share price of ¥538.
The minimum number of shares for the TOB is 5,408,800, or 17.89%, and no maximum has been set. Arai Ryuji (新井隆二), SEED's largest shareholder, does not intend to tender his shares and plans to jointly manage the company with Luxshare Precision.
If Luxshare Precision secures the required number of shares, it is expected to obtain at least two-thirds of the total voting rights together with the shares held by Arai Ryuji (新井隆二). The company may then hold an extraordinary general meeting of shareholders and delist following a squeeze-out through a share consolidation.
The plan calls for the voting rights ratio to be adjusted ultimately to 51% for Arai Ryuji (新井隆二) and 49% for Luxshare Precision. Luxshare Precision has grown primarily through orders for Apple products, and the transaction would further strengthen its position as Apple's key partner.