Brother makes bid for shares of Roland DG
The planned offer has been criticised as it jeopardises plans for an MBO at Roland DG
Shining a spotlight on the industry
Tuesday, 26 Mar 2024 14:11 GMT
Brother Industries and Roland DG have both developed technologies within the wide-format and garment print markets in recent years
Update 25/04/24:
Taiyo Pacific Partners LP is reported to be considering raising its ¥61.9bn (£321m) tender offer for Roland DG after Brother Industries threw its hat into the ring.
In March, it was revealed that Brother had announced plans to acquire the common shares of Roland DG Corporation which was dubbed a ‘hostile takeover’ due to the pre-existing MBO plans at Roland.
Brother is seeking to commence the Tender Offer in mid-May 2024 with an offer to buy all of the common shares in Roland at ¥5,200 (£27) per share, ¥165 (£0.86) more than the tender offer by XYZ KK (Taiyo Pacific Partners) of ¥5,035 (£26.10), an offer Roland’s board of directors were in favour of.
Now, according to Taiyo Pacific CEO, Brian Heywood, the company, which is Roland’s biggest shareholder with a 19.4% stake, is also considering accepting Brother’s takeover bid of ¥5,200 (£27) per share or abandoning the buyout when the tender offer expires later this month.
Speaking to Bloomberg UK, Heywood said: “We will study which of the three is most strategically correct for Roland DG,” with Roland DG shares having soared 50% this year to ¥5,400 (£28.01) at the time of writing – well above both offers.
26/03/24:
Brother Industries, a producer of machinery and business solutions, has announced plans to acquire the common shares of Roland DG Corporation, a move dubbed as a ‘hostile takeover’ by many in the industry due to pre-existing MBO plans at Roland.
Brother is seeking to commence the Tender Offer in mid-May 2024 with an offer to buy all of the common shares in Roland at ¥5,200 (£27) per share, ¥165 (£0.86) more than a tender offer by XYZ KK (Taiyo Pacific Partners), an offer Roland’s board of directors were in favour of.
In a statement on its website, Roland says: “The company has not received any prior communication from Brother Industries regarding the announcement of the Tender Offer by Brother Industries, and the Tender Offer by Brother Industries has not been approved by the Company’s board of directors.”
Roland has stated it will notify shareholders of its response and opinion after the board of directors and the Special Committee analyse and review the contents of the disclosure documents and other relevant information.
Brother was established in 1908 repairing sewing machines and has since grown to produce a range of technology for use in home, office, and industrial environments.
The company believes there is a strong business kinship between itself and Roland with the two companies having collaborated together since 2019 on their products.
Previous statements from Brother point out that by owning both printhead and ink technologies Roland could benefit as a subsidiary, but the deal would also cut manufacturing costs and streamline sales.
Roland has rejected previous offers from Brother since January 2024 but now must consider the offer due to it potentially being in the best interests of its shareholders.
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