Wednesday, April 6, 2011

Global Testing/ASJ

Global Testing/ASJ: Yageo Corp, a Taiwanese mfr of resistors, surged 6.7%, its biggest advance in a yr, after receiving a buyout offer from Kohlberg Kravis Roberts & Co & its founder chairman Pierre Chen, valuing the company at NT$16.10 or 14% premium above its prev close. Yageo owns 23.6% of Global Testing & the question now is whether KKR would trigger similar buyout of the latter, which currently trades at over 50% discount to its book value of US12¢.

Interestingly, Chen also owns a direct 25.1% stake in ASJ, which also makes & sells resistors. At 5¢, the share price of the stock also grossly undervalues its book value of 12¢.

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