Synnex Technology International Corp (聯強), which distributes computers and handsets, yesterday said it would make a tender offer to buy out smaller local rival Bestcom Infotech Corp (群環) for NT$1.1 billion (US$32.9 million) to boost its operational efficiency.
Synnex holds a 40.85 percent stake in Bestcom and offered to buy the remaining 59.15 percent, or about 61.04 million common shares, in the electronics distributor at NT$18 per share, Synnex said in a statement.
The offering represents an 8.4 percent premium, compared with Bestcom’s closing price of NT$16.6 on the nation’s secondary Emerging Stock Market.
The combination “will help the company boost revenue and enhance technology services, as well as help explore new business opportunities to distribute more branded products,” Synnex spokesman Chang Wen-ying (張文英) told a news conference at the Taiwan Stock Exchange yesterday.
“The deal aims to reduce investment costs and to create operational synergy... As well as generate more revenue,” Chang said.
Bestcom made NT$11.7 billion in revenue last year, up 1.69 percent from NT$11.51 billion in 2014, according to the company’s filing with the Taiwan Stock Exchange.
Synnex generated NT$322.6 billion in revenue by distributing a wide range of electronics, including consumer electronics such as Apple Inc’s iPhone and Asustek Computer Inc’s (華碩) notebook computers at home and overseas.
The tender offer is to begin today and last until Monday next week.
The deal would be successful after Synnex buys 20.64 million shares, or a 20 percent stake, by the deadline, the company said.
The deal will require approval from the Fair Trade Commission, the company said.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS