Yamaha in bid to buy Nexo

News

Rob Hughes Jun 20 2008, 3:54pm

Move comes as boss of Yamaha US retires

Yamaha announced on Thursday that it is to make an offer to acquire control of French speaker company, Nexo.

The musical instrument and pro audio giant intends to raise its stake in Nexo to 74.9 per cent, by buying all of the shares owned by the founders at 51.542 Euros per share, with a view to ultimately making the French audio equipment maker a wholly owned subsidiary. Tradingmarkets.com estimates the buyout at around 34 million Euros.

The company has held 10.22 per cent of the Paris-based speaker manufacturer since June 2005, following which, the two companies combined their know-how to develop the NXAMP Powered Digital TD controller and joined forces to strengthen their capabilities for providing better system solutions for their clients.

Tradingmarkets.com reports that the parties involved appear close to an agreement, and that the deal could be completed as early as next month, after which, Yamaha will attempt to acquire the remaining shares.

“Yamaha 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,” The Yamaha website declares.

“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.”

This comes as Audio Pro International receives news from Summer NAMM that Terry Lewis, boss of Yamaha US has retired. No one from Yamaha was available for comment at this time, but more news will follow when it becomes available.
yamaha.com
tradingmarkets.com