MediaTek Inc (
MediaTek's board approved the proposed acquisition of a 69 percent stake in the San Jose, California-based chip designer, spokeswoman Sophia Liang (梁厚誼) told a press briefing.
Each MediaTek common share would be exchanged for 45.31 shares of Nucore.
The deal is tentatively scheduled to close on July 20.
"Digital cameras are a new market for us. We have to penetrate new markets. This deal will also help us upgrade our technologies in making cameras used in mobile phones," Liang said.
REVENUES
Handset chips are MediaTek's biggest source of revenue, accounting for about half of the chip designer's revenues, which totaled NT$15.11 billion (US$456.41 million) in the final quarter of last year. Chips for DVD players are the company's second largest source of revenues.
The acquisition would have a positive impact on the company's net value and earnings per share in the future, MediaTek predicted in a filing with the Taiwan Stock Exchange.
MediaTek would continue to supply chips to Nucore's existing customers, mostly Asian camera brands and contract makers, Liang said.
MediaTek planned to issue 3.5 million new common shares to cope with the acquisition.
Nucore Technology, founded in May 1997, has undergone five rounds of equity financing amounting to US$84 million, the company's Web site says.
Nucore Technology is a developer of digital and analog imaging devices for cameras and video cameras. The company has 72 employees.
MediaTek's board yesterday approved the distribution of a NT$15 cash dividend per common share and a 5 percent stock dividend.
SHAREHOLDERS' MEETING
The acquisition plan and the dividend proposal will be put on the agenda for the shareholders' meeting on June 11. Merrill Lynch forecast in late January that MediaTek would post a profit of NT$26.51 billion, or NT$27.38 per share, for this year -- up 15.2 percent from NT$22.57 billion, or NT$23.56 a share, last year -- boosted by the robust demand for handset chips in the Chinese market.
Merrill Lynch analyst Jonah Cheng (
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