Hitachi to tender offer to buy Taiwan elevator maker Yungtay Engineering
TAIPEI, NNA – Japanese manufacturer Hitachi, Ltd. said last week it will tender an offer to buy all issued shares of Yungtay Engineering Co., a leading elevator and
escalator maker in Taiwan, to compete better in the Chinese market.
The takeover bid for NT$60 ($1.94) per share is aimed at boosting Hitachi’s industrial product competitive edge in China and other growing Asian markets.
Pending approval by Taiwanese authorities, Hitachi plans to finish the process in 2019. Hitachi group owns 11.7% of shares in Yungtay. The cost of buying all the remaining shares is estimated at about NT$21.6 billion.
Hitachi said the global elevator and escalator market is expected to show an annual growth of over 2 percent, backed by strong demand in Asia.
But it also noted that the Chinese market, which holds more than half of global demand for new installations, has seen increased competition.
“This requires businesses to improve competitiveness of their products and make their maintenance services more efficient by using digital technology, such as IoT,” Hitachi said.
Founded in 1966, Yungtay has been a business partner of Hitachi for 50 years. The largest maker of elevators and escalators in Taiwan, Yungtay has also operated in mainland China, supplying those machines mainly for residential buildings, according to Hitachi.