Inotera Memories Inc (華亞科), one of Taiwan’s leading DRAM chipmakers, yesterday denied media reports of a price reduction in its acquisition deal with the US company Micron Technology Inc.
There has been no recent discussion with Micron on cutting Inotera’s price per share from NT$30 to less than NT$20 in the deal, as reported in the Taiwanese media, Inotera said in a statement, adding that the two companies are working closely to complete the acquisition as soon as possible.
Shares of Inotera yesterday plunged on the Taiwan Stock Exchange after local media reported that Micron is seeking to cut the acquisition price in the deal, in which the Taiwanese firm agreed to sell a further 67 percent stake to Micron at a total cost of NT$130 billion.
Inotera shares dropped 2.49 percent to close at NT$25.45, with 112.54 million shares changing hands, although the broader market continued its upward momentum from the previous session, closing up 0.68 percent at 8,625.92 points.
“Despite the statement, many investors were worried that the deal might fall apart since the details remained murky,” equity analyst Vickie Hsieh said. “They simply dumped Inotera shares today to keep their cash on hand until a clearer picture of the deal emerges.”
The stock has been under pressure since June 8, when Micron said on its Web site that the acquisition was unlikely to be completed by middle of next month as planned, but it did not give any other details about the postponement.
On Monday last week, Inotera said the acquisition was proceeding well, but a new completion date had not yet been set.
Micron, a 33 percent shareholder of Inotera, is to fully acquire the Taiwanese DRAM maker, which is to become a subsidiary of Micron Semiconductor Taiwan Co (台灣美光), a unit of Micron.
According to local media reports, an acquisition price of NT$30 per share has been agreed on, based on Inotera’s earnings per share of NT$2.69 for the first nine months of last year.
However, the report said Micron was pushing to drop the price below NT$20 per share because Inotera had incurred a loss per share of NT$0.24 in the first quarter of this year due to a supply glut.
Inotera’s denial of the reports came in line with a similar statement by Nanya Technology Corp (南亞科), which holds a 24.2 percent stake in Inotera.
The two Taiwanese DRAM firms are the memorychip manufacturing arms of Formosa Plastics Group (台塑集團).
DEVELOPING TALENT: The electronics contractor is looking to recruit people to work in core tech fields and emerging industries like electric cars and robotics Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, has launched a recruitment drive, offering a monthly salary of no less than NT$45,000 (US$1,485) to university graduates. For those with a master’s degree, the starting pay would be NT$52,000 per month at the minimum, while doctorate degree holders would receive at least NT$60,000 a month, Hon Hai said a statement issued early this week. The latest recruitment drive is aimed at attracting talent in core technology fields — artificial intelligence, semiconductors and next-generation mobile communications — and emerging industries — electric vehicles, digital healthcare and robotics, the
MRT TRAVEL FALLS: In February, ridership on the Taipei MRT System fell 8.96 percent from an average of 2.01 million per day in January Scooter sales jumped 13 percent last month as more commuters turned to two-wheelers to avoid public transportation amid the COVID-19 pandemic, the latest statistics showed. Sales expanded to 74,493 units last month, compared with 65,913 units in February, statistics released on Wednesday by Kwang Yang Motor Co (光陽工業) and the Ministry of Transportation and Communications showed. In the first quarter, aggregate sales slid 0.51 percent year-over-year to 186,627 units, from 187,580 units, data showed. Kwang Yang, the nation’s biggest scooter manufacturer, continued to lead the market by selling 24,136 vehicles last month, growing 6.12 percent from 20,785 units in the previous month, while
Asustek Computer Inc (華碩), the nation’s leading PC vendor, yesterday launched its first dual-screen gaming laptop powered by Intel Corp’s latest central processing units (CPUs). The PC manufacturer’s announcement closely followed the US chipmaker’s unveiling of its 10th Generation Core H-series, the fastest commercial mobile processors with speeds of up to 5 gigahertz. Although Asustek’s Zephyrus Duo 15, the highlight of its Republic of Gamers line, is not the company’s first laptop with two screens, it is its first designed specifically for gaming. Nestled between the primary display panel and the keyboard, the secondary display, which Asustek calls the ScreenPad Plus, is angled
NO ILL EFFECT: Last month’s data mainly reflected deals made in February, when the spread of COVID-19 was still relatively mild in Taiwan, housing brokers said Housing transactions in the six special municipalities totaled 19,824 units last month, up 7.8 percent from a year earlier, brokers said, citing government data. Last month’s data mainly reflected deals made in February, when the pinch of the COVID-19 pandemic was not yet evident, they said. Taoyuan posted the largest improvement, with housing transactions soaring 36.6 percent year-on-year to 3,676 units, local government data showed. Taiwan Realty Co (台灣房屋) attributed the pickup to the completion of two presale residential projects in the municipality. Houses in Taoyuan have increasingly gained in popularity in the past few year years due to relatively affordable home prices and