Yamaha To Make Offer for NEXO S.A.Yamaha Corp. Japan announced yesterday that its Board of Directors would make an offer to the founders of Plailly to acquire all of their shares of NEXO. 6/25/2008 7:56 AM Eastern
Yamaha To Make Offer for NEXO S.A.
Yamaha Corp. Japan announced yesterday that its Board of Directors would make an offer to the founders of Plailly to acquire all of their shares of NEXO.
Yamaha Corp. Japan announced yesterday that its Board of Directors would make an offer to the founders of Plailly, France-based audio company NEXO S.A. to acquire all of their shares of NEXO. The Board came to this conclusion at its meeting held June 19.
In June 2005, Yamaha purchased 10.22 percent interest in NEXO, a brand of high-output loudspeaker systems for professional use in large concert venues, halls, and theaters, and entered into a strategic alliance with the company. Under the agreement, the two companies combined their knowledge to develop the NXAMP powered digital TD controller and strengthen their capabilities to provide better solutions for clients.
"The offer to purchase NEXO by our parent company, Yamaha Corp. Japan, is a very positive move for both companies," said Larry Italia, vice president/general manager of Yamaha Commercial Audio Systems, in a statement. "Right now, it is business as usual for us, our dealers, and our customers."
Yamaha decided that its joint ventures with NEXO would generate faster results if the two companies worked in closer cooperation. Yamaha then began to take the necessary steps toward making NEXO a wholly owned subsidiary of the Yamaha Group by offering to acquire the shares of the founders and launching a tender offer to acquire the remainder of shares on the market.
Should NEXO become a subsidiary, Yamaha plans to continue developing the NEXO brand and strengthening its capabilities for creating systems solutions by advancing the position of NEXO and Yamaha in loudspeaker technology. Yamaha also intends to enhance its development capabilities in existing product lines and strengthen its production capacity through the use of NEXO's production facilities.
If the companies come to an agreement, the sale could be concluded by the end of the year.