Shares of Adcaned Lithium Electrochemistry (KY) Co (Aleees, 立凱) rose to the daily limit of 10 percent yesterday after securing NT$2 billion (US$61.7 million) investment from FDG Electric Vehicles Ltd (五龍電動車), in which Hong Kong tycoon Li Ka-shing (李嘉誠) owns a major stake.
FDG, listed on the Hong Kong stock market, is to hold a 21.8 percent share of Aleees and become the biggest shareholder of the company after subscribing to 46 million new common shares of Aleees via a private placement, Aleees spokesman Huang An-pang (黃安邦) said in a telephone interview.
Aleees shares are priced at NT$35 each.
In addition, FDG is to spend an additional NT$420 million to buy Aleees’ “green” energy assets.
In turn, Aleees is to buy a 4.2 percent stake in FDG for HK$490 million (US$63.18 million) to set up a strategic partnership with the Hong Kong company.
Aleees said that the strategic partnership between FDG and the Taiwanese firm is pending approval from shareholders of the two companies and a regulatory nod.
Aleees primarily produces lithium ferrous phosphate used in batteries for electric cars, with the company lately expanding its business to electric car batteries, Huang said.
Li, chairman of Hong Kong-based CK Hutchison and Cheung Kong Property (長地集團), is one of the major investors in FDG, which specializes in electric cars.
The stock price of Aleees climbed to NT$33 yesterday, while the Taipei Exchange (TPEx, 櫃檯買賣中心) inched up only 0.07 percent.
Buying in Aleees shares spread to other electric car component makers in the local equity market, helping the sector outperform the broader market at a time when the main board and the over-the-counter market moved in a slow session in reflection of losses on other regional markets yesterday, dealers said.
Market analysts said that the acquisition price offered by FDG serves as an important indication to many investors who have been upbeat that Aleees shares would go higher to challenge the NT$35 level on the back of Li’s fund injections.
Analysts said that Li has gradually disposed of some of his assets in Hong Kong and China, but moved others to different markets, so FDG’s plan to invest in Aleees is being watched closely in the local market.
The plan to invest in Aleees simply follows an earlier project by an investment firm owned by Li that invested in Taiwanese sound technology firm Ambidio.
Among other electric car battery suppliers, shares of Coremax Corp (康普) rose 6.6 percent to close at NT$56.5, and shares of Changes Ascending Enterprise Co (長園科) gained 10 percent to NT$74.2 amid optimism toward electric car development, the dealers said.
RUN IT BACK: A succesful first project working with hyperscalers to design chips encouraged MediaTek to start a second project, aiming to hit stride in 2028 MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it is engaging a second hyperscaler to help design artificial intelligence (AI) accelerators used in data centers following a similar project expected to generate revenue streams soon. The first AI accelerator project is to bring in US$1 billion revenue next year and several billion US dollars more in 2027, MediaTek chief executive officer Rick Tsai (蔡力行) told a virtual investor conference yesterday. The second AI accelerator project is expected to contribute to revenue beginning in 2028, Tsai said. MediaTek yesterday raised its revenue forecast for the global AI accelerator used
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has secured three construction permits for its plan to build a state-of-the-art A14 wafer fab in Taichung, and is likely to start construction soon, the Central Taiwan Science Park Bureau said yesterday. Speaking with CNA, Wang Chun-chieh (王俊傑), deputy director general of the science park bureau, said the world’s largest contract chipmaker has received three construction permits — one to build a fab to roll out sophisticated chips, another to build a central utility plant to provide water and electricity for the facility and the other to build three office buildings. With the three permits, TSMC
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
Dutch chipmaker Nexperia BV’s China unit yesterday said that it had established sufficient inventories of finished goods and works-in-progress, and that its supply chain remained secure and stable after its parent halted wafer supplies. The Dutch company suspended supplies of wafers to its Chinese assembly plant a week ago, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” Reuters reported on Friday last week. Its China unit called Nexperia’s suspension “unilateral” and “extremely irresponsible,” adding that the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement
RSS