TOKYO (Reuters) - Japanese electronics conglomerate Panasonic Corp 6752.T has raised its offer to buy out subsidiary PanaHome Corp 1924.T, in an effort to satisfy the housebuilder's shareholders, who were unhappy with the original bid.
In a statement on Friday, Panasonic said it had decided to make an all-cash offer to buy the rest of PanaHome in a deal worth 92.4 billion yen ($846.9 million).
Panasonic, which already owns 54.18 percent of the subsidiary, said its offer was 1,200 yen per share, representing a 16.4 percent premium on Friday’s closing price.
Panasonic had originally planned to buy out PanaHome through an all-stock deal, which valued the latter at 1,009 yen per share, based on Panasonic’s closing price of Dec. 20, the day the offer was announced.
Some PanaHome shareholders claimed that offer undervalued the company and did not reflect its large cash holdings.
In making the new offer, Panasonic said it had showed the “utmost consideration” to other PanaHome shareholders by including a premium in its offer and believed that it would lead to the bid being endorsed.
($1 = 109.1100 yen)
Reporting by Taiga Uranaka and Makiko Yamazaki; Editing by Gopakumar Warrier and Toby Davis
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