Yageo to launch tender offer for China circuit protection device specialist

Source: Digitimes news

Taiwan-based passive component vendor Yageo has announced plans to acquire shares of China-based BrightKing for NT$73 (US$2.46) per unit from May 4 to June 21, with a goal of fully acquiring the circuit protection component specialist.

Yageo expects to buy at least a 50% stake in BrightKing, which is headquartered in Dongguan, China with production and R&D facilities located in both China and Taiwan.

The acquisition will be funded by its own cash, said Yageo, adding that company had accumulated NT$20 billion in cash as of the end of first-quarter 2018.

Acquiring BrightKing will help improve further Yageo’s product portfolio, as well as better provide customers with one-stop buying services, according to the Taiwan-based company specializing in MLCCs and chip resistors. The deal will also enhance Yageo’s presence in the automotive and industrial segments.

BrightKing’s products include transient voltage suppressors (TVS), metal oxide varistors (MOV), gas discharge tubes (GDT), spark gap surge arresters (SPG), polymeric positive temperature coefficient (PPTC) devices, ESD protection devises and thyristor surge suppressors (TSS), with their target markets including security, communications, automotive electronics, power supply and smart meter.

Yageo added it will also assist BrightKing in expanding the China-based firm’s market presence worldwide. China has been BrightKing’s biggest market.

BrightKing posted net profits of NT$204 million on revenues of NT$2.71 billion for 2017, with EPS reaching NT$4.96.

Founded in 1999, BrightKing has a workforce of about 1,100 people. BrightKing started trading on the Taiwan Stock Exchange (TWSE) in 2014.

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