Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Japan’s Canon to launch $2.8 bn bid to buy Sweden’s Axis

Japan's Canon to launch $2.8 bn bid to buy Sweden's Axis/AFP

Japan’s Canon to launch $2.8 bn bid to buy Sweden’s Axis/AFP

TOKYO, Feb 10- Japan’s Canon said Tuesday it would launch a tender offer to buy all outstanding shares in Axis AB, a Swedish network video solutions company, for about $2.8 billion next month.

The Japanese camera and copier maker said in a statement that funds required for the purchase would reach 23.6 billion Swedish krona, or about 333.7 billion yen ($2.8 billion).

The offer is “friendly in nature and the Board of Directors of Axis has decided to recommend Axis’s shareholders to accept it”, Canon said.

The offer would be launched as soon as Swedish financial authorities and the Stockholm stock exchange give approval, scheduled for early March.

The deal would “enable both companies to offer innovative, sophisticated network video solutions”, Canon said.

Axis, established in 1984 in Lund, Sweden, reported a net profit of 539 million Swedish krona for the year to December on sales of 5.45 billion Swedish krona.

Canon said in late January that net profit grew 10.5 percent in 2014 owing to the impact of a weak yen and cost cuts as well as strong demand for its office equipment.

Japan’s currency has declined sharply against the dollar recently, a plus for exporters as it inflates the value of repatriated overseas income.

Canon and domestic rivals including Sony and Olympus have seen a big drop in sales of their digital imaging products as camera equipped smartphone sales boom.

Despite the slowdown, Canon said it expects both sales and profit to grow in 2015.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...