Yageo’s subsidiary Teapo Electronic and Kaimei set to merge

Yageo’s (2327-TW) subsidiary Teapo Electronic (2375-TW) and Kaimei (5317-TW) held conference today on March 13rd, announcing a merger via a share swap. 1.165 shares of Teapo can swap for 1 share of Kaimei. Calculated by the closing price of Teapo (NTD49.85) and Kaimei (NTD57.9) yesterday, suggesting a premium of 0.3% for Teapo.

In the future, Kaimei will no longer exist and will not be OTC-listing. Teapo will be renamed as Kaimei Electronic and remain TWSE-listed. Both companies told that the merger is expected to strengthen the expansion of business opportunities including 5G, automobile and IoT.

Teapo told that Kaimei has brand awareness and technology on the products and owns large aluminum capacitor market and Japanese OEM market, which can be a good aid for Teapo’s products, customers and markets. In addition, the cooperation between the two companies has been more than 2 years with good results. Therefore, both companies decided to step into next stage and merge.

Teapo began to invest in Kaimei in June 2015 and won half of the seats in June 2016. For now, Teapo holds about 43% of Kaimei"s equity.

At present, Kaimei’s subsidiary includes Bothhand, its investee company Tong Hsing Electronic and others. Teapo said that after the merger, the company will focus on three major trends which are 5G, automobile and IoT.