The Kodensha,Co.,Ltd. <1948> started trading on Tuesday with buy orders flooding the market after KINDEN CORPORATION <1944> announced post-market on Monday that it will launch a tender offer aimed at making Kodensha a wholly owned subsidiary. The stock moved sharply higher to narrow the gap toward the TOB price of 11,501 yen per share.

The minimum threshold for the acquisition is set at 1,336,800 shares (a 15.31% ownership ratio), with no upper limit, and the offer period runs from May 26 to July 6. Kodensha has expressed approval of the bid and recommended that its shareholders tender their shares. If the takeover is successful, Kodensha is expected to be delisted following standard procedures. Subsequently, Kodensha's parent company, Mitsubishi Electric Corporation <6503>, plans to transfer all 4,485,620 shares (a 51.36% stake) it holds in Kodensha back to Kodensha for 36.15 billion yen. Kodensha will fund the share buyback and ensure sufficient distributable capital through capital provisions from KINDEN and capital reduction measures.

KINDEN anticipates favorable conditions will persist across the electrical construction industry, but expects that a medium- to long-term decline in highly skilled labor could trigger supply-side constraints and a widening supply-demand gap. By making Kodensha a wholly owned subsidiary, KINDEN aims to strengthen its business foundation and boost construction capabilities through collaboration. The Tokyo Stock Exchange placed Kodensha shares under supervision on Monday.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.