Toshiba closer to winning takeover bid for NuFlare with major shareholder backing (updated)

Shibaura Machine

15/01/2020 14:39

(Updates with details from statement, context)
    TOKYO, Jan 15 (Reuters) - Toshiba Corp  6502.T  moved a step
closer to winning a takeover bid for chip equipment unit NuFlare
Technology Inc  6256.T  after receiving backing from a major
shareholder on Wednesday.
    Toshiba Machine Co  6104.T , NuFlare's second-largest
shareholder and a former subsidiary of Toshiba Corp, said on
Wednesday it would sell its 15.8% stake in NuFlare to its former
parent, shrugging off a higher counter offer by Hoya Corp
 7741.T .
    The tender by Toshiba Machine would allow Toshiba to secure
more than two-thirds of NuFlare.
    Toshiba, which already holds 52.4% of NuFlare, is aiming to
take full control of the chip equipment maker as the Japanese
government pointed to corporate governance issues with dual
listings of parents and subsidiaries.  urn:newsml:reuters.com:*:nL4N28T2D9
    Optical products maker Hoya has offered 12,900 yen per
NuFlare share or $1.4 billion - a rare unsolicited bid in Japan,
topping Toshiba's offer of 11,900 yen for each share it does not
own.
    It wants at least two-thirds of NuFlare, meaning Toshiba
would need to sell part of its stake, but Toshiba's board has
decided not to accept Hoya's offer, saying the chip equipment
unit is core to the group.
    In choosing Toshiba's offer over Hoya's, Toshiba Machine
said in a statement Hoya's takeover was unlikely to succeed due
to Toshiba's decision not to sell.
    Toshiba Corp currently owns less than 3% of Toshiba Machine.

 (Reporting by Makiko Yamazaki, editing by Louise Heavens and
Elaine Hardcastle)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))