Bidding War Erupts for Roland DG Corp.

Three Options on the Table

Taiyo Pacific is weighing three options, according to Brian Heywood, Co-CEO of Taiyo Pacific. These include:

• Increasing their existing tender offer price.
• Accepting Brother’s offer of ¥5,200 per share.
• Walking away from the acquisition altogether when the tender offer period ends later this month.

Current Offer vs. Market Price

Taiyo Pacific is currently offering ¥5,035 per share, which is lower than Brother’s offer. However, Roland DG’s share price has skyrocketed this year, reaching ¥5,480 – significantly higher than both bids.

Consolidation in the Office Equipment Industry

Japan’s office equipment industry is undergoing a period of consolidation as companies adapt to the shift towards paperless operations. Major players like Fujifilm Business Innovation and Konica Minolta are exploring mergers, while Ricoh Co. and Toshiba TEC Corp. are combining their multifunction printer businesses.

Roland DG: A Different Path

Unlike its competitors, Roland DG focuses on niche, high-tech digital printers used for tasks like printing signage, art replicas, wallpaper and industrial UV. According to Heywood, the company seeks to maintain its unique position in the market.

Previous Partnership Attempt Fizzled

Heywood revealed that Roland DG and Brother previously attempted a product development partnership in 2019. However, the collaboration failed due to delays and other issues.

Management Buyout or Strategic Exit

A management buyout led by Taiyo Pacific could unlock further value for Roland DG, Heywood believes. He suggests an exit strategy within three to five years through either a relisting or a sale to another company.

Brother’s Offer Requires Scrutiny

Despite their preferred options, Heywood emphasizes the need to carefully evaluate Brother’s offer to determine its impact on Roland DG’s long-term value.

The coming weeks will be crucial as Taiyo Pacific decides its next move and determines the fate of Roland DG Corp.