samsung nuheara acquisition

Samsung Subsidiary Launched Failed $84M Takeover Bid for Nuheara: Report

According to a new report in the Australian Financial Review, consumer electronics giant Samsung recently launched a takeover bid for Australian audio device maker, Nuheara. However, according to the original report, the company pulled its offer after discovering that the disclosure documents had to be submitted to the Australian Securities Exchange (ASX).

Nuheara reportedly went into a trading halt on Wednesday after informing market that a “large multinational consumer electronics company” had approached the company with an $84 million AUD (approximately $59M USD) acquisition offer in April. That large multinational company, according to the report, was Samsung.

However, it was later determined and confirmed by Nuheara that the actual offer came from a Samsung subsidiary, Harman. Harman International owns recognized brands such as JBL and AKG, and was acquired by Samsung in 2017.

The take over offer represented a 20 percent premium to Nuheara’s then share value of 7¢. Following the news, the company’s shares fell to 6¢.


Nuheara Acquisition Offer


According to the report, the proposal was subject to several conditions. Among them, it demanded Nuheara divest from all of its mining interests, which apparently is a holdover from earlier times when it served as a resource company named Wild Acre Metals, prior to re-branding as Nuheara in 2016.

The demands from Harman also included scheme implementation agreement. However, according to Nuheara, any such agreement “would also have been subject to a number of further conditions, including shareholder, court and regulatory approvals.”

The Nuheara board informed its shareholders that it could not indicate whether there would be another takeover bid, but that it would update shareholders of any further developments with its “continuous disclosure obligations.”

“Nuheara continues to be focused on the development of its technology and products and pursuing Nuheara’s aspiration to be the global hearing leader by providing more functional, affordable and accessible hearable products.”


Nuheara Raises Additional Equity


While Nuheara says they don’t expect Harman or another company to present another takeover offer soon, shortly following the story, the company reported they have successfully raised $4 million (AUD), with over 80% of the discounted shares being taken by existing shareholders.

The newly raised funds will be used to “sales and marketing activity to support new and existing products”.


Source: Australian Financial Review, Channel News