Kaga Electronics, the Tokyo-listed distributor of semiconductors, electronic components and IT equipment, has taken control of smaller rival Shinko Shoji through a tender offer that closed on August 3, 2026. Shareholders tendered 20,938,007 shares, comfortably clearing the 15,988,500-share minimum Kaga had set as a condition for the deal to proceed. Kaga paid ¥1,580 per share, a total outlay of ¥33.08bn.
The purchase lifts Kaga's voting stake in Shinko Shoji from 1.74% to 72.45% once settlement begins on August 10, 2026. At that point Kaga becomes Shinko Shoji's parent company and largest shareholder, a status it did not previously hold.
| Metric | Value |
|---|---|
| Tender offer price | ¥1,580 per share |
| Shares tendered | 20,938,007 |
| Minimum required threshold | 15,988,500 shares |
| Total acquisition cost | ¥33.08bn |
| Kaga's stake before the offer | 1.74% |
| Kaga's stake after settlement | 72.45% |
| Settlement date | August 10, 2026 |
Kaga now intends to move to a second step: a squeeze-out procedure, following the two-step acquisition method Shinko Shoji had already outlined in its May 15 opinion statement on the offer, to acquire the roughly 27% of Shinko Shoji shares it still does not own. Once that is complete, Shinko Shoji's stock will be delisted from the Tokyo Stock Exchange's Prime market under the exchange's standard delisting rules, and it will no longer trade there. The companies have not yet fixed the specific timing, saying only that Shinko Shoji will announce next steps promptly once details are settled with Kaga.
Shinko Shoji's business has contracted sharply over the past three fiscal years. Revenue fell from ¥175.8bn in the year to March 2024 to ¥99.1bn in the year to March 2026, and the annual dividend was cut from ¥48.50 to ¥15.50 per share before recovering slightly to ¥18.50.
| Metric | Year to March 2024 | Year to March 2025 | Year to March 2026 |
|---|---|---|---|
| Revenue | ¥175.8bn | ¥116.0bn | ¥99.1bn |
| Operating profit | ¥4.88bn | ¥637mn | ¥1.20bn |
| Net profit attributable to owners | ¥3.19bn | ¥505mn | ¥1.13bn |
| Dividend per share | ¥48.50 | ¥15.50 | ¥18.50 |
The two companies were not strangers before the offer: Kaga already held a 1.74% stake in Shinko Shoji, and the pair have an existing buy-sell relationship in semiconductors and electronic components, the kind of trading tie that often precedes consolidation among mid-sized Japanese distributors. Kaga said the effect of adding Shinko Shoji as a consolidated subsidiary on its own group earnings is still being reviewed and will be disclosed if a material update arises.