Nanya Technology Corp (南亞科技) yesterday said its board of directors approved a plan to acquire a 5 percent stake in Micron Technology Inc for about NT$31.46 billion (US$1 billion), making the local DRAM chipmaker the largest shareholder of the US memorychip giant.
Nanya will subscribe to 57.78 million new common shares issued by Micron at US$17.29 per share through a private placement, the company said in a statement submitted to the Taiwan Stock Exchange.
That represents a 0.69 percent discount on Micron’s closing price of US$17.41 on Tuesday.
As part of the deal, Nanya will also obtain an option to license Micron’s next-generation DRAM manufacturing technologies.
The Taoyuan-based chipmaker said it would not rush into a new round of technological upgrades, as it is still focusing on converting its 30-nanometer (nm) chips into 20nm chips.
The company might not license Microns’ new-generation DRAM technologies until the second half of next year, it said.
The acquisition of Micron shares is part of a broader buyout deal launched by Micron, which aims to boost its shareholding of its local DRAM manufacturing arm Inotera Memories Inc (華亞科技) to 100 percent.
Micron agreed to offer NT$132.5 billion to buy a remaining 67 percent share of Inotera from Nanya and subsidiaries of Formosa Group (台塑集團).
The transaction is expected to be completed by early next month.
Nanya is to obtain NT$47.6 billion by selling its 24.2 percent stake in Inotera to Micron. The chipmaker plans to use part of the proceeds to pay for Micron’s new shares.
Nanya will still book pre-tax income of NT$16.14 billion in the current quarter from unloading Inotera shares. That will add NT$5.87 per share to the memory hip maker’s pre-tax earnings per share this quarter.
In related news, Nanya’s board of directors yesterday gave the go-ahead for the issuance of US$500 million in overseas convertible bonds to finance its technological migration to 20nm chips.
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