TDK to buy Epcos in spinout plan
Japanese company TDK is to buy German passive-component supplier Epcos in an deal worth €1.4bn, and then spin out a combined component operation.
TDK plans to merge Epcos’ business with its own passives operation and then carve it out as a separate company, provisionally named TDK EP Components.
As a first step, TDK said will launch a public tender offer for all outstanding shares of Epcos, offering shareholders €17.85 in cash for each share. The offer price represents a 52 per cent premium over the three-months average closing share price on the Frankfurt Stock Exchange (Xetra) prior to the date of this announcement.
TDK currently holds 2.5 per cent of the current registered share capital of Epcos and has secured delivery of a further approximately 70 per cent.
TDK expects the offer to close by October and plans to finance the deal with a bridge loan.
The corporate separation that is slated to follow the acquisition is subject to the approval of a future TDK’s general shareholders’ meeting.