Hitachi Acquired Additional Shares to Hold Majority of Shares of Yungtay, Elevator Company Based in Taiwan
Accelerating the global expansion strengthening its business base in China and Asia.
Hitachi, Ltd. (TSE: 6501; “Hitachi”) today announced that it acquired 9.99%(41,080,000 shares) of all the issued shares in Yungtay Engineering Co., Ltd. (TWSE: 1507, “Yungtay”), an elevator and escalator company in Taiwan, through paired trade via Hitachi Elevator Taiwan Co., Ltd., a wholly owned subsidiary of Hitachi, to strengthen its elevators and escalators business in People’s Republic of China (“China”), and Asia. Price of shares acquired is 72.0 TWD (approximately 262 JPY(1)) per share, and approximately 3.0 billion TWD (approximately 10.8 billion JPY(1)) in total.
Hitachi, together with its wholly owned subsidiaries, owned 41.1% (167,933,671 shares) of all the issued shares excluding treasury shares before the acquisition and increased its share holding up to 51.1% (209,013,671 shares), majority of all the issued shares through the transaction this time.
Yungtay was founded in 1966 and is the largest company in the elevator and escalator business in Taiwan region. It has also operated in Mainland China as one of the major suppliers of elevators and escalators, mainly for residential buildings. Yungtay has been a business partner of Hitachi for over 50 years since right after its foundation, with Hitachi’s capital participation in 1968. Hitachi has been continuously acquiring shares of Yungtay after acquiring 28% (114,409,932 shares) of all the issued shares excluding treasury shares through its Public Tender Offer in 2019(2).
Hitachi will accelerate the global expansion of its business with its measures including this enhancement of partnership with Yungtay, expanding new installation units through product lineup enhancement and cost competitiveness, and improve profitability through increasing maintenance units in China and Asia.
Overview of Yungtay
- Calculation based on 1 TWD = 3.64 JPY
- News release dated April 23, 2019 titled “Results of Public Tender Offer for Shares of Yungtay, Elevator Company Based in Taiwan” http://www.hitachi.com/New/cnews/month/2019/04/190423a.html
