Latest Tokyo Brief coverage on Shinko Shoji Co.,Ltd., tracking filings, financial news, and market signals from Japan.
TSE:8141
Kaga Electronics raised its full-year profit forecast after absorbing Shinko Shoji, but a ¥6bn non-cash negative-goodwill gain accounts for most of the ¥7bn net-profit increase, and the company strips that gain out before setting its higher dividend.
Shinko Shoji's board approved cancelling 1.66 million treasury shares and called an October 9 vote on a share consolidation that would delist the electronics distributor by October 29, completing a takeover it never fully endorsed on price.
Kaga Electronics's stake in fellow electronics trader Shinko Shoji jumps from 1.74% to 72.45% after its tender offer cleared the minimum threshold, and a squeeze-out to delist the target from the Tokyo Stock Exchange comes next.
Kaga Electronics lowered the minimum acceptance level in its ¥1,580-a-share tender for Shinko Shoji from 66.67% to 55.73% of shares and pushed the deadline to August 3, after Shinko Shoji's stock traded above the offer price.
Kaga Electronics extended its Shinko Shoji tender offer to July 14 and pushed any squeeze-out meeting to late September, while saying the ¥1,580-a-share price is not being raised.
The move: Kaga Electronics extended its tender offer for Shinko Shoji to July 14, kept the price at ¥1,580 a share, delayed settlement to July 22 and shifted any follow-on shareholder meeting target to late September.