Johnson Electric Holdings, the world's second-largest manufacturer of micromotors, has launched a US$548.5 million offer to buy Swiss-based peer Saia-Burgess, in what could become its biggest acquisition.
In a statement yesterday, Johnson Electric said it had offered to buy out the shareholders of Saia-Burgess, a major supplier of switches, motors and programmable control devices to the vehicle, heating and air-conditioning and telecommunications industries, at 1,060 Swiss francs ($6,551) per share.
Sais-Burgess' shares last changed hands at 1,081 francs.
If all shareholders take the offer, Johnson Electric will need to spend US$548.5 million for its takeover and will also assume the Swiss firm's US$92.4 million worth of net debt.
The offer is subject to the condition Johnson Electric must receive acceptances from more than 50 per cent of shareholders.
The bid came after the Saia-Burgess board rejected a hostile bid from Japanese electronic component-maker Sumida Corp, priced at 950 francs per share.
Johnson Electric chairman Patrick Wang and Saia-Burgess chief executive Daniel Hirschi said the acquisition would bring product cross-selling synergy.