May 26, 2010

Longreach To Acquire Sanyo Electric Logistics via Tender Offer

Longreach Group will acquire Sanyo Electric Logistics (JASDAQ 9379), a provider of logistic solutions, through a tender offer. The tender offer price is JPY 1,750 per share, a 54% premium over the last 6-month average trading price. The tender offer value is JPY 17.9 billion (USD 200 million). The company's annual sales were JPY 38.1 billion (USD 423 million) and operating profits were JPY 2.2 billion (USD 24.4 million) for the March 2010 period. Sanyo Electric Co. (TSE6794), the company's parent which holds a 57.7% stake, will sell its entire stake in the tender offer as a part of its restructuring plan. Longreach plans to delist the company after the completion of the tender offer. Sanyo Electric will continue to outsource distribution to the company and plans to acquire a 5% stake after Longreach completes its acquisition.

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