Yamaha intends to seek to acquire 100% of the shares of Nexo through the launching of a tender offer process for the acquisition of the remaining shares.
In June 2005, Yamaha purchased a 10.22% interest in Nexo and entered into a strategic alliance with the company (which resulted in the development of the NXAMP Powered Digital TD controller) and joined forces to strengthen their capabilities for providing better system solutions for their clients. Yamaha says it came to the conclusion that its joint activities with Nexo would generate results at a substantially accelerated pace if the two companies could work in closer cooperation. Accordingly, Yamaha decided to take steps toward making Nexo a wholly-owned subsidiary of the Yamaha Group by offering to acquire the shares of the founders and, thereafter, launching a tender offer to acquire the remainder of Nexo's shares on the market.
After Nexo becomes a subsidiary, Yamaha says it will "continue and further develop the Nexo brand as well as its know-how, and strengthen capabilities for creating system solutions by advancing the position of Nexo and Yamaha in speaker technology. Yamaha will also work to enhance its development capabilities in existing product lines and strengthen its production capacity through the use of Nexo's production facilities."
(Lee Baldock)
