Japanese camera and precision machinery maker Pentax Corp. agreed to a takeover offer from rival Hoya Corp. worth up to about JPY 105 billion (USD 864 million / EUR644 million) on 31 May 2007, a move …
Japanese camera and precision machinery maker Pentax Corp. agreed to a takeover offer from rival Hoya Corp. worth up to about JPY 105 billion (USD 864 million / EUR644 million) on 31 May 2007, a move that underlines the growing influence of shareholders in Japan. Hoya is offering JPY 770 (USD 6.34 / EUR4.72) each for the Pentax shares, and plans to start the tender offer to shareholders in early June 2007, with the intention of making Pentax a wholly owned unit, both sides said. Details, including the deadline for the offer, will be announced later, they said in a joint statement. Pentax management had resisted a stock-swap offer in 2006 from Tokyo-based optics and glass maker Hoya, which had long coveted Pentax“s expertise in making medical equipment. The companies originally agreed to merge in December 2006, but Pentax abandoned the plan in April 2007. Under pressure from shareholders, Pentax released a mid-term business plan, but this failed to convince investors and analysts, and the latest announcement ends more than a month of conflict. Hoya President and Chief Executive Hiroshi Suzuki said the tender offer would cost about JPY 105 billion (USD 864 million / EUR644 million), making it Hoya“s biggest ever acquisition. Mr. Suzuki said he plans to make Pentax a wholly-owned unit by November 2007, and will maintain Pentax“s camera operations. The tender offer will be amicable, although a hostile takeover was a possibility had the two companies failed to agree, he said. The offer is the latest action in a struggle between established camera makers, including Pentax and Nikon, who are losing ground to electronics giants such as Sony Corp. and Samsung Electronics Co. in the fight for digital camera dominance. Through the latest move, Hoya hopes to become more competitive in the imaging field against rivals Olympus and Konica Minolta, which also make copiers and medical equipment. Konica Minolta was earlier forced to sell its camera unit to Sony.