Inotera Memories Inc (華亞科技) yesterday said that the US’ Micron Technology would fully subscribe to its NT$5 billion (US$169 million), 736 million common-share offering, the latest effort by the lossmaking Taiwanese DRAM manufacturer to improve its financial structure.
The deal will boost Micron’s holding to 40 percent from the current 30 percent, allowing the US memory chipmaker to surpass Nanya Technology Corp (南亞科技) to become Inotera’s biggest shareholder.
Nanya, the nation’s top DRAM chipmaker, will hold a 26 percent stake in Inotera following the transaction.
The price was set at NT$6.55, representing an 11 percent discount to Inotera’s closing price of NT$7.40 yesterday. The transaction will be made via private placement by Micron subsidiary Numonyx Holding.
“The share sale will help lift the company’s net value and improve the company’s financial structure,” Inotera said in a filing to the Taiwan Stock Exchange. “Micron will receive more 30-nanometer [nm] capacity, which will help boost Inotera’s profits, as its shareholding will change, without a board shakeup.”
Taoyuan-based Inotera is also in talks with banks for a new syndicated loan of NT$10 billion, company president Charles Kau (高啟全) told reporters.
Kau said business was on the rebound, with factory utilization recovering to 90 percent, thanks to improving demand.
Inotera lost NT$21 billion last year as low demand cut prices. The stock’s net value fell to NT$7 a share at the end of last year, from NT$11.5 a share a year ago.
Inotera plans to spend NT$4 billion on its upgrade to 30nm process technology and will increase its spending later in line with its technology migration. Last year, the chipmaker budgeted NT$11.6 billion for technology migration.