Ferrotec announced plans to make 日本抵抗器製作所 a wholly owned subsidiary through a tender offer. The offer is worth approximately ¥2.3 billion, or ¥1,901 per share, and will run from the 18th through 5 November. If the tender offer succeeds, 日本抵抗器 is expected to be delisted from the TSE Standard Market.
Ferrotec (Tokyo), which makes components for semiconductor manufacturing equipment, announced plans to conduct a tender offer for 日本抵抗器製作所 (Nanto City) and make it a wholly owned subsidiary. The offer is reportedly worth approximately ¥2.3 billion, with an offer price of ¥1,901 per share. The tender offer period runs from the 18th through 5 November, with 1,237,203 shares scheduled to be purchased and a minimum of 6,180,700 shares.
If the tender offer succeeds, 日本抵抗器 is expected to be delisted from the TSE Standard Market. Ferrotec said it aims to combine 日本抵抗器's technology in resistors and hybrid ICs for automobiles and power equipment with its own production base, making use of its overseas sales network and establishing a mass-production system for lower-priced products.
Since April last year, 日本抵抗器 had been seeking a partner for a business alliance or a capital and business alliance. Ferrotec began considering the opportunity after being consulted through Mizuho Securities. Following meetings and factory visits, Ferrotec submitted a proposal in January this year for discussions including the possibility of an acquisition, and the two companies reportedly reached an agreement after further negotiations.
Ferrotec has two factories in Hakusan City and one in Kawakita Town, where it develops and manufactures ceramic components for semiconductor manufacturing equipment. The company is pursuing a strategy of bringing production back to Japan and reportedly announced the establishment of a new factory in Kawakita Town in August this year.