Motorola Completes Tender Offer for Yaesu's Parent Company
On Wednesday, January 16, Motorola, Inc announced that its subsidiary, MI, Inc,
has successfully completed its tender offer to acquire a controlling interest
in Vertex Standard, parent company of Yaesu. The tender offer period expired on
January 15 with approximately 5.4 million shares tendered and accepted. On
November 5, 2007, Motorola launched the tender offer, in cooperation with
Tokogiken (a privately held Japanese company controlled by Vertex Standard's
president and CEO Jun Hasegawa) with the intention of forming a joint venture
to develop and sell Vertex Standard products and develop select Motorola
products. All regulatory clearances required for the completion of the
transaction have been obtained.
Starting on January 22, Motorola will have a total ownership stake of
approximately 78 percent of Vertex Standard on a fully diluted basis (excluding
certain stock acquisition rights that are scheduled to be cancelled), following
the settlement of the tender offer for approximately 12 billion Yen (almost
$112 million US dollars) in cash. Through a subsequent restructuring process,
Motorola will own 80 percent of Vertex Standard, while Tokogiken will retain a
20 percent stake.
"We are extremely pleased to team with Motorola, a global technology leader
that has been a leading provider and pioneer in 2-way radio communication
solutions," Hasegawa said. "With Motorola, Vertex Standard will be stronger and
better positioned to deliver new and innovative 2-way radio solutions for
professionals and consumers."
Dennis Motschenbacher, K7BV, Yaesu's Executive Vice President for Amateur Radio
Sales in North America, told the ARRL that he sees the joint venture of Vertex
Standard and Motorola as "a very good thing for Amateur Radio in general and
Yaesu customers in particular. I hope our loyal customers will readily see this
business venture for what it is, an opportunity to make a solid 50-plus year
old Yaesu company even stronger and more formidable than is already the case.
There is absolutely no reason to have the slightest concern about equipment
warranties and the continuation of support for our products. I am really
excited to see what the joint engineering capabilities of these two huge
communications companies will bring in the way of new technology advancement
for the Amateur Radio Service."
Motschenbacher continued: "There is a unique aspect of business that comes with
Amateur Radio. It's not just about a radio. It's the relationship between the
ham, the radio itself and the company that makes that radio. This relationship
in Amateur Radio is far different than it is, say, between a buyer of a HDTV,
the TV and the TV manufacturer. The relationship in Amateur Radio is far more
personal and 'bonding,' per se. I am certain that we will do our utmost to
ensure that Motorola understands this delicate bond. Since Motorola is leaving
the day-to-day management of Yaesu in the hands of my boss, Jun Hasegawa,
President of Vertex Standard, we can expect our longtime relationship with hams
to remain intact."
According to Motorola, "[t]he joint venture is expected to expand and develop a
comprehensive suite of products to address the rapidly growing demand for 2-way
radio solutions. Vertex Standard's strength in the amateur, marine and airband
(avionics) segments provides Motorola with access to new business
opportunities. In addition, Vertex Standard's solutions are highly
complementary with Motorola's products and add greater depth and breadth to
Motorola's Government and Public Safety business. The venture also provides
additional engineering talent for Motorola."
Following the restructuring, which will be implemented after the settlement of
the tender offer, Vertex Standard will be de-listed from the JASDAQ. The joint
venture company will continue to be called "Vertex Standard Co, Ltd" and will
become a subsidiary of Motorola, with headquarters in Tokyo. -- Some
information provided by Motorola
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