Japan: Bosch to acquire outstanding shares of Japanese subsidiary
By: Megan Lampinen, Thursday, April 24, 2008, AutomotiveWorld.com
Robert Bosch has announced it will launch a tender offer to acquire all of the outstanding shares of its Japanese subsidiary Bosch Corporation. The company wants to turn the unit into a wholly-owned subsidiary.
The tender offer price is ¥600 per share (US$5.78 per share). This represents a premium of 46% over the average closing price on the Tokyo Stock Exchange for the previous one month ended on 22 April 2008, and a premium of 42.2% over the closing price on 22 April 2008.
Robert Bosch currently owns 59.7% of the outstanding shares of Bosch Corporation. The tender offer price values the shares of Bosch Corporation held by minority shareholders at approximately ¥101bn.
"This offer sends a clear signal of our commitment to Japan, which is a market of major strategic importance to the Bosch Group. Achieving our goal of full ownership of Bosch Corporation will provide us with increased flexibility to maximise our future success in the Japanese market," states Franz Fehrenbach, chairman of the board of management of Robert Bosch.
The tender offer will begin on 24 April 2008 and will continue for 38 business days, closing on 19 June 2008.
Subject to the results of the tender offer, shares in Bosch Corporation may be delisted from the Tokyo Stock Exchange. Subsequent to the close of the offer, Robert Bosch stated that it intends to take additional steps to acquire all of the remaining shares in Bosch Corporation, at which point delisting would occur in any event.
Published on Thursday, April 24, 2008
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