KEMET Corporation (“KEMET”) (NYSE: KEM) today announced that, in connection with the pending acquisition of KEMET by Yageo Corporation (“Yageo”) (TAIEX: 2327), the parties received the final regulatory approval that is a condition to closing of such transaction from the Investment Commission, Ministry of Economic Affairs in Taiwan.
The parties expect to consummate the merger on or about June 15, 2020, subject to the satisfaction of the remaining closing conditions set forth in the merger agreement, announced on November 11, 2019, and discussed in detail in the definitive proxy statement, filed by KEMET with the U.S. Securities and Exchange Commission on January 14, 2020.
Upon consummation of the merger, Yageo will acquire all of the outstanding shares of KEMET’s common stock for US $27.20 per share in an all-cash transaction valued at approximately US $1.6 billion.
In response, Yageo said the commission’s approval is expected to accelerate the completion of the acquisition, which was announced in November 2019, and anticipated it will include Kemet’s sales and earnings on its books in July at the earliest.
Earlier this year, Yageo, which produces components such as chip resistors, inductors and multi-layer ceramic capacitors (MLCC), said the deal was scheduled to be completed in the third quarter after the company secured necessary approvals from antitrust authorities in Austria, Germany, Taiwan, the United States and China.
In a statement, the commission under the Ministry of Economic Affairs said Kemet specializes in passive components used in a wide range of industries such as automotive electronics, industrial applications, aviation, medical care, smartphones, cloud-based Internet communications, 5G gadgets and wireless communications.
The deal is expected to help Yageo extend its reach in the global market by strengthening the company’s high-end technologies and enabling it to enter a niche market, the commission said.
After the acquisition, Yageo has said it expects to see sales double and its profits increase by about 80 percent, which will consolidate its position as the third largest MLCC company in the world and solidify its share of the automotive electronics market.
Kemet has a workforce of 14,000 at 23 plants in 22 countries across Europe, Asia and in the U.S., according to Yageo, which has adopted a strategy of seeking growth through acquisitions.
In 2018, Yageo acquired another American company, Pulse Electronics Corp., for NT$22 billion (US$736 million.)