On the 30th, renowned pharmaceutical company Johnson & Johnson and Yao Sheng Electronic jointly announced the signing of a “Stock Exchange Cooperation Agreement” aimed at resource integration through stock swaps, thereby expanding their reach in the biotech and medical sectors. Johnson & Johnson Chairman Huang Po-hsiung stated that Yao Sheng has recently ventured from the electronics industry into medical devices and possesses advantageous domestic and international distribution channels for safety syringes. This partnership presents an opportunity to collaborate with Johnson & Johnson’s pharmaceutical products, fostering a win-win scenario.
Under the “Stock Exchange Cooperation Agreement,” Yao Sheng will increase its capital by issuing 5,529,278 new common shares to exchange for 7,741,000 common shares held by 42 Johnson & Johnson shareholders, at a swap ratio of 1 Yao Sheng share for 1.4 Johnson & Johnson shares. Based on Yao Sheng's closing price of 130.5 TWD and Johnson & Johnson's closing price of 74.9 TWD on the 29th, Yao Sheng is acquiring Johnson & Johnson shares at an approximately 24.4% premium. This agreement may enable Yao Sheng to secure a board seat in Johnson & Johnson.
Yao Sheng's issuance of new shares, valued at approximately 720 million TWD, will grant it a 17.23% stake in Johnson & Johnson. Meanwhile, the 42 Johnson & Johnson shareholders will collectively obtain Yao Sheng’s newly issued shares, comprising 8.34% of Yao Sheng’s post-exchange issued shares.
Founded in 1966, Johnson & Johnson is a manufacturer of generic drugs, focusing on niche generic pharmaceutical development. It has a robust sales network that includes direct operations and distribution to hospitals, clinics, and pharmacies. The partnership with Yao Sheng aims to leverage Yao Sheng’s expertise in electronic technology operations and marketing to accelerate market expansion.
Established in 1992, Yao Sheng is known for the design and production of transformers, inductors, and coils. In 2023, it launched an electronic contract manufacturing division specializing in automotive systems, industrial computers, medical devices, and energy storage cabinets. In 2022, Yao Sheng entered the advanced medical device market, specifically the safety syringe industry, with hopes that the collaboration with Johnson & Johnson will strengthen its presence in the medical field, diversify operational risks, and promote group diversification.
Resource (mandarin): 耀勝換股結盟強生 進攻生醫領域
