Citizen set to expand Miyano shareholding

Citizen Holding’s, which takes in the manufacture of Citizen sliding-head lathes via its Industrial Machinery business, already held just under 30 per cent of Miyano Machinery’s stock (17,500,000 shares), having taken this stake in early 2007 (see link below). Bidding is open until 15 October, with Citizen Holdings having launched a Tender Offer (open for 35 days) to acquire a further 20,283,000 shares, or 34.66 per cent, of the company. Although it is a public company, Citizen Machinery UK managing director Geoff Bryant says that in Japan it is seldom that another bidder enters the frame in such situations. Citizen Holdings’ has a target of achieving an operating margin of 10 per cent by 2010, and in working towards that goal sees its Industrial Machinery business as being strengthened through mergers and acquisitions and business alliances. Mr Bryant said that with the further coming together of the Miyano and Citizen machine tool businesses in Japan, the combined operation would be stronger. He likened the situation in Japan as one where there are three premier league teams, no first division teams, with the others in the lower leagues. This latest move will bring the two companies closer to the ‘big three’, he suggested. Synergies and efficiencies will be pursued, taking in “development, procurement, manufacturing, sales and service,” says the official statement. Indeed, Miyano has already developed a machine using Citizen CNC technology (so-called superposed technology) – its BNX machine, available in Japan currently having been announced in July this year. Machine pictured: Citizen A20