The Japanese giant is not bidding as a 'bargain hunter' – TDK offers a steep premium of almost 7 % to Micronas' 60-days average stock market price – they are willing to pay 7.50 CHF (Swiss francs) per share which adds up to a purchase price of 223.2 million CHF (224 million US dollars or 206 million euros). Micronas has already said it recommends its shareholders to accept the offer.
From TDK’s perspective, the move is intended to increase sales and profitability its activities in automotive, industrial and information and communications technology. The company said it sees increasing demand for such sensors, rating Micronas as a leading manufacturer for Hall-effect sensors with major customers in the automotive industry. According to the release, Micronas currently has the broadest product spectrum of Hall-effect sensors as well as embedded microcontrollers customised to process these sensor data worldwide. The sensors are used to detect end-positions and measuring linear or angular movements in safety, body, comfort and powertrain applications in the car. According to sources close to Micronas, TDK intends to use as competence centre for such sensors. TDKs expertise in the area of magnetic materials will create synergy effects, the company said.
A major competitor in the Hall-effect sensor market for automotive and industrial applications is Belgian semiconductor provider Melexis.
With its move, TDK continues its acquisition strategy. In 2008, the company took over passive components Epcos AG, like Micronas a supplier to automotive and industrial markets.
[Graham Prophet adds] Fundamentally a materials company, TDK now has a diverse range of interests in the electronic product space, not least that of power supply maker TDK Lambda.