Nippon Antenna to take over China arm of Taiwan peer Wha Yu Industrial
TOKYO, NNA – Nippon Antenna Co. will acquire a 100 percent stake in an antenna manufacturer in Suzhou, Jiangsu Province, to capitalize on the growing demand for communications equipment in China and plans to use it as a foothold for overseas business expansion.
Nippon Antenna (China) Co., a wholly-owned subsidiary of Nippon Antenna, will take over Suzhou Aeon Tech Co., a manufacturing affiliate of Taiwan-based antenna maker Wha Yu Industrial Co., in August for 94 million yuan ($13 million), the Japanese firm said in a statement last Friday.
Tokyo-based Nippon Antenna is striving to expand its global marketing network of communications equipment centering on its Shanghai subsidiary.
As part of this effort, Nippon Antenna is aiming to strengthen the collaboration with Wha Yu to develop overseas markets and increase profitability and competitiveness. Nippon Antenna has a 4.63 percent stake in Wha Yu.
The Tokyo-based firm committed to acquiring Suzhou Aeon Tech, considering its relationship with the Wha Yu group. Nippon Antenna has commissioned Suzhou Aeon Tech to produce some of its products such as antennas, a spokesman for Nippon Antenna told NNA on Monday.
“We don’t foresee any remarkable impact of our acquisition of Suzhou Aeon Tech on our sales or profits for the current business year. Rather, we view the takeover as a foothold for our business expansion in China and beyond,” he said.
Suzhou Aeon Tech, established in 2003, is a sub-subsidiary of Wha Yu. It incurred a 2 million yuan net loss on sales of 108 million yuan last year, according to Nippon Antenna.