adidas-Salomon AG is looking to take a full stake in its operations in Japan, reportedly offering last week to acquire the balance of the shares it does not own of Salomon and Taylor Made Co. Ltd. as it moves to take full control in many of its global operations. The company reportedly offered 30 million euros ($37 million) to secure its Japan position, which would equate to 1,200 yen ($11.56) for each of the 3.2 million shares.
The offer was a 31% premium to the closing price on March 30 and a 45.5% premium over the average closing price of the past six months.
Tokyo-based Salomon & Taylor Made Co. Ltd. is currently majority-owned by Salomon S.A., which owns 79.2% of the Japan company.
“Full ownership of Salomon & Taylor Made Co., Ltd. will enable us to raise operational efficiency, and will facilitate expansion of our business in Japan,'' said adidas-Salomon CEO Herbert Hainer in a release. He said the tender offer represents an opportunity for shareholders to realize a “substantial premium to the market value of their investment”.
The tender offer began on April 1 and will continue for a period of 43 days, closing on May 13, 2004. The bid is supported by the Japanese company's board of directors, who agreed to sell their own shares.
The company just acquired the remaining 49% of its Turkish unit.
