Highlights

  • Bourns has launched a full cash takeover offer for Rakon at NZD 1.55 per share.
  • Lock-up agreements covering 41.2% of shares have been secured by Bourns.
  • Rakon shares are up 134.68% over the past year.

Rakon Limited (NZX:RAK) has entered a formal takeover period after U.S.-based electronics manufacturer Bourns, Inc. launched a full cash offer to acquire all equity securities in the company. The offer values Rakon shares at NZD 1.55 each and follows a year in which the stock has risen more than 130%. Rakon shares last traded at NZD 1.46 on 9 February, up 2.46% on the day.

Bourns Tables All-Cash Takeover Offer

Rakon confirmed that Bourns has made a full takeover offer for all ordinary shares and employee share rights at NZD 1.55 per equity security. The offer follows a Takeover Notice issued by Bourns on 11 January 2026 and is made under New Zealand’s Takeovers Code.

The offer document has been released, and Rakon has advised shareholders to take no action until the company issues its Target Company Statement. That statement is scheduled to be released by 23 February 2026 and will include an Independent Adviser’s Report prepared by Calibre Partners, along with a recommendation from Rakon’s independent directors.

Offer Conditions and Timeline

The takeover offer is subject to several conditions, including approval under the Overseas Investment Act and receipt of relevant overseas regulatory consents. The offer must remain open until at least 11:59 pm on 23 March 2026.

Under takeover rules, the offer cannot be closed early or withdrawn without consent from the Takeovers Panel. The offer price also cannot be reduced.

Shareholder Support and Valuation Metrics

Bourns disclosed that Rakon’s three largest shareholders—the Robinson Family interests, Siward Crystal Technology Co. Limited, and Wairahi Investments Limited / Wairahi Holdings Limited—have entered into lock-up agreements to accept the offer. Timemaker entities have also agreed to accept the offer. Together, these agreements cover approximately 41.2% of Rakon shares on issue.

The offer price represents premiums to historical trading levels, including the closing price of NZD 0.90 on 9 January 2026, as well as one-, six- and twelve-month volume-weighted average prices. Based on Rakon’s EBITDA guidance of NZD 15 million to NZD 24 million for the year ending 31 March 2026, the offer implies EBITDA multiples ranging from 14.9x to 23.8x.

Strategic Intent and Background

Bourns stated it intends to operate Rakon as a standalone division, retaining its global operations, workforce and research and development activities. The company plans to support Rakon’s existing strategy by utilising its international operations, customer base and access to capital.

In late 2023, Rakon disclosed it had received a non-binding and conditional indication of interest at NZD 1.70 per share, which did not proceed to a formal offer. Bourns’ current proposal is not subject to due diligence and is structured as an all-cash transaction.

Rakon shareholders are now entering a formal evaluation phase following Bourns’ takeover offer. With regulatory conditions outstanding and a Target Company Statement pending, attention is expected to remain on the independent assessment and shareholder response ahead of the March 2026 deadline.

Frequently Asked Questions (FAQ)

Q1: What is Bourns offering for Rakon shares?
Bourns has made an all-cash offer of NZD 1.55 per ordinary share and employee share right.

Q2: Should Rakon shareholders take action now?
Rakon has advised shareholders to take no action until the Target Company Statement and Independent Adviser’s Report are released.

Q3: When does the takeover offer close?
The offer must remain open until at least 11:59 pm on 23 March 2026.