and Feiwang reported on April 26 that Yageo announced that it had received notice from the Committee on Foreign Investment in the United States (CFIUS) and approved the merger of Yageo and KEMET.
Yageo's merger with KEMET has taken a big step. The Committee on Foreign Investment in the United States (CFIUS) has officially approved the merger of Yageo and KEMET. Since the approval time is earlier than the original schedule, the "New Yageo" will also be ahead of schedule. It will be formed in the third quarter of this year. After the two parties complete the transaction and KEMET is included in Yageo's consolidated statements, Yageo is expected to recognize KEMET's revenue in advance in the third quarter of this year. In the second half of the year, when the global economy is in chaos, it will help Yageo maintains the sustainability of annual revenue growth.
Yageo’s revenue returned to an annual growth trend in March after a 14-month absence. In the second half of the year, KEMET became a 100% owned subsidiary of Yageo and will play a certain role in Yageo’s ability to maintain annual revenue growth. It is also an important basis for foreign investment circles to measure Yageo’s share price.
According to the agreement, Yageo will acquire all issued and outstanding common shares of KEMET in cash for US$27.20 per share. For this merger, Yageo has successfully completed the listing of Global Depositary Receipts (GDR), obtaining a total of US$650 million in funds. Although it was issued at a discount, Yageo GDR only took three trading days after the listing. , equaling the current stock price in Taiwan, China. As the arbitrage selling pressure of foreign legal persons slowed down, Yageo's stock price showed sideways, rising slightly by 1 yuan on the 24th to close at 345 yuan, a weekly increase of 1.62%. KEMET is one of the world's most well-known capacitor manufacturers and a global leader in electronic technology.
According to Kemet’s official website, the transaction is expected to be completed in the second half of 2020, but the transaction is subject to customary closing conditions and obtaining required regulatory approvals. Upon completion of the transaction, KEMET will become a wholly-owned subsidiary of Yageo.
