Chipbond Technology Corp (頎邦科技) yesterday saw its shares plunge as investors worried that a plan to acquire a flexible integrated-circuit substrate supplier could dilute the value of their stock.
Shares in Chipbond, the nation’s largest LCD driver chip packaging and testing firm, fell 5.44 percent to NT$74.7 yesterday, underperforming the TAIEX’s 0.08 percent rise.
On Thursday, Chipbond said in a statement its board had approved a plan to acquire unlisted Simpal Electronics Co (欣寶電子) through a 100 percent share swap to secure material supplies.
Simpal is one of the world’s top five substrate makers for the chip-on-film (COF) package process used for large driver IC applications, with its competitors including Chang Wah Electromaterials Inc (長華電材).
Chipbond said the acquisition would enable it to secure film for its customers given strong demand for chips for ultra-high-resolution TVs.
Under the terms of the share swap, Chipbond will issue 51.68 million new shares for the merger, in which the company will exchange one of its shares for 3.1 Simpal shares.
The two companies, both based in Greater Kaohsiung, are expected to complete the deal on Oct. 1, subject to regulatory approval, the statement said.
“Based on Chipbond’s current paid-in capital, the dilution effect of the deal is about 9 percent,” Fubon Securities Co (富邦證券) analyst Calvin Shao (邵琮淳) said in a note yesterday.
However, Shao said he remains positive about the merger because through the deal Chipbond would be able to secure key materials for ultra-high-resolution TV chips, as well as helping it reduce costs through vertical integration.
UBS Securities also welcomed the deal.
“We believe Chipbond will be one of major beneficiaries of the panel resolution upgrade trend in smartphones, tablets PCs, NB [notebooks] and TVs,” UBS analyst Samson Hung (洪希民) said in a note yesterday. “Chipbond could offer more one-stop shopping packages to its customers and a streamlined COF procurement process, which should also add value to its customers.”
However, Credit Suisse was less positive about the deal and its synergy benefits.
“We believe it will take time for Chipbond to turn Simpal around and that its earnings will become more volatile during slower seasons,” Credit Suisse analyst Jerry Su (蘇厚合) said in a note yesterday.
Simpal reported a profit of NT$1.4 million last year.
UBS maintained a “buy” rating on Chipbond with a target price of NT$80, Credit Suisse retained its “neutral” rating, but raised its target price to NT$68 from NT$60, while Fubon kept its “add” rating.
Meanwhile, Chipbond yesterday reported first-quarter net profit of NT$737.66 million, up 53.05 percent from NT$481.98 million a year earlier. Earnings per share were NT$1.22 in the first quarter, compared with NT$0.79 one year ago, according to the company's filing to the Taiwan Stock Exchange.
The company's consolidated revenue increased 15.35 percent year-on-year to NT$3.85 billion in the first quarter from NT$3.34 billion, but both of its gross margin and operating margin declined to 23.66 percent and 16.68 percent, from year-earlier levels of 26.62 percent and 19.36 percent, respectively, the filing showed.
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
RSS