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Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.

October 26, 2018

Hitachi Decides to Conduct Public Tender Offer for
Shares of Yungtay, Elevator Company Based in Taiwan

Accelerating Global Expansion of Elevators, Escalators and Related Services
through Strengthening Business Base

Tokyo, October 26, 2018 --- Hitachi, Ltd. (TSE: 6501, "Hitachi") today announced that it decided to conduct a public tender offer to acquire all issued shares of Yungtay Engineering Co., Ltd. (TWSE: 1507, "Yungtay"), an elevator and escalator company in Taiwan, and submitted a binding letter to Yungtay with the intent to acquire each share at 60.0 TWD. Additionally, Hitachi has signed a contract with Chou-Li Hsu, Honorary Chairman and founding family of Yungtay, that he will tender his 4.3% of shares in Yungtay, in the case of a public tender offer by Hitachi.
Hitachi owns, together with its wholly owned subsidiary Hitachi Building Systems Co., Ltd., 11.7% of Yungtay's shares, and intends to acquire 100% ownership of Yungtay through this public tender offer. With the acquisition, Hitachi aims to enhance the elevator and escalator business in the People's Republic of China ("China") and Asia by increasing the competitiveness of its products, and accelerate the global expansion of its product and service businesses.

The public tender offer process is planned to be conducted in 2019 following the approval of related government authorities.

Hitachi has aimed to become an "Innovation Partner for the IoT Era" with its 2018 Mid-term Management Plan that started in FY2016, and is deploying its Social Innovation Business using digital technologies to resolve issues faced by society and customers. With the Building Systems Business, Hitachi has been operating its business mainly in China and other Asian countries, with the basic strategy to provide services utilizing data from elevators and other building equipment globally.

Yungtay was founded in 1966 and is the largest company in the elevator and escalator business in Taiwan region. It has also operated in Mainland China as one of the major suppliers of elevators and escalators, mainly for residential buildings. The company has been a business partner of Hitachi for over 50 years, with Hitachi's capital participation in 1968.

The global elevator and escalator market expects a yearly growth of over 2%, propelled by growing demand in Asia. Meanwhile, the Chinese market, which holds more than half of the global demand for new installations, has seen increased competition. This requires businesses to improve competitiveness of its products as well as advance and make efficient its maintenance services, utilizing digital technology such as IoT.

Hitachi has decided to conduct a public tender offer of Yungtay to enrich its product lineup and expand its new installation business with improved cost competitiveness in China and Asia, and improve its profitability through increasing the number of maintenance units. Hitachi will accelerate the global expansion of its business through realizing improved competitiveness of its products and advanced maintenance service by combining the Yungtay's cost competitiveness with Hitachi's advanced technology such as IoT.

Hitachi is receiving advice regarding this offer from Credit Suisse Securities (as financial advisor), Lee and Li Attorneys-at-Law (for legal matters) and KPMG FAS and KPMG Tax Corporation (for accounting and tax matters).

Background of Share Valuation (at 60.0 TWD)

  • Sum of 49.15 TWD (Closing price on October 25, 2018) and 22.1% premium
  • Sum of 48.78 TWD (Simple average closing price of 1 months up to and including October 25, 2018) and 23.0% premium
  • Sum of 48.05 TWD (Simple average closing price of 3 months up to and including October 25, 2018) and 24.9% premium

Overview of Yungtay

Company nameYungtay Engineering Co., Ltd.
HeadquartersTaipei, Taiwan
RepresentativeChairman: Ray Chun Su
Business overview
  • Design, manufacture, sales, installation, repair, maintenance of elevators & escalators, and elevator & escalator motors
  • Sales & maintenance of construction machinery, cranes, components etc.
Year of foundation1966
(As of December 31, 2017)
TWD 4,108.20 million (Approx. JPY 14.9 billion)
Number of issued shares
(As of December 31, 2017)
408,690,200 shares (Not including treasury shares)
(As of December 31, 2017)
Hitachi Group: 11.7% (Hitachi, Ltd. 7.8%, Hitachi Building Systems Co., Ltd. 3.9%)
Chou-Li Hsu: 4.3%
Others: 84.0%
Consolidated revenue
TWD 16,752.21 million (Approx. JPY 60.6 billion)
operating income
TWD 1,478.92 million (Approx. JPY 5.4 billion)
Number of employees
(As of December 31, 2017)

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society's challenges, combining its operational technology, information technology, and products/systems. The company's consolidated revenues for fiscal 2017 (ended March 31, 2018) totaled 9,368.6 billion yen ($88.4 billion). The Hitachi Group is an innovation partner for the IoT era, and it has approximately 307,000 employees worldwide. Through collaborative creation with customers, Hitachi is deploying Social Innovation Business using digital technologies in a broad range of sectors, including Power/Energy, Industry/Distribution/Water, Urban Development, and Finance/Social Infrastructure/Healthcare. For more information on Hitachi, please visit the company's website at

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