The decision aims to improve management efficiency and facilitate strategic decision-making. The board of directors of Roland DG has unanimously voted to support the tender offer and recommend it to shareholders.
XYZ, the company established by Taiyo Pacific Partners, will conduct the tender offer from March 13th to March 27th, 2024, at a price of USD$38.73* (JPY 5,035) per share, representing a premium of approximately 30% over the closing price on September 9, 2023. The total acquisition value is estimated at approximately USD$477* million (JPY 62 billion).
Remaining President -Kohei Tanabe
Following the acquisition, Roland DG will continue to operate under its current name with President Kohei Tanabe remaining at the helm.
Maturing low-solvent sales catalyst
This decision comes in light of the maturing low-solvent printer market in developed countries, which accounts for a significant portion of Roland DG’s sales. With limited room for further market share expansion, going private is seen as an opportunity to establish a more agile management structure that can effectively collaborate with external partners and adapt to evolving market conditions.
It is noteworthy that Taiyo Pacific Partners was previously involved in a similar management buyout (MBO) of Roland Corporation, the musical instrument manufacturer that was once the parent company of Roland DG.
*Please note, information obtained from various sources including Nikkei Shimbun article and Roland website. Exchange rate JPY:USD as of 2-26-2024.