WT Microelectronics Co Ltd (文曄科技) yesterday announced plans to fully acquire a smaller local peer for about NT$1.9 billion (US$62.2 million), expanding its presence in the fast-growing consumer electronics chip market.
The company, the nation’s second-largest and the world’s fourth-largest distributor of semiconductor components and parts, said it has offered NT$27 for each Maxtek Technology Co Ltd (宣昶) share, representing a 41 percent premium to its closing share price of NT$19.10 on Wednesday.
SYNERGY
The acquisition would create a synergy, as the two companies have few overlapping customers and products, WT Microelectronics spokesperson Cheryl Yang (楊幸瑜) told a media briefing at the Taiwan Stock Exchange.
“Maxtek would complement WT Microelectronics, helping it distribute a wider range of niche semiconductors, including chips for TVs, LCD panels, servers, set-top boxes and touch sensors,” Yang said.
WT Microelectronics specializes in the distribution of communication chips, such as specialty ICs, analog ICs, memory ICs, discrete components and chipsets. Its major clients include LG Electronics Co, Micro Technology Inc, STMicroelectronics NV and Marvell Technology Group Ltd.
Communication chips accounted for 45 percent of WT Microelectronics’ total revenue in the fourth quarter of last year, while consumer electronics chips contributed 15 percent, company data showed.
Maxtek focuses on consumer electronics chips, along with Wi-Fi, Bluetooth and wireless charging solutions. Its major clients include Integrated Device Technology Inc, Qualcomm Atheros Inc, MStar Semiconductor Inc (晨星半導體) and Richtek Technology Corp (立錡).
EARNINGS
Maxtek posted a net profit of NT$100 million last year, or earnings per share of NT$1.43, on revenue of NT$11.82 billion.
WT Microelectronics made NT$1.7 billion in net profit last year, or NT$3.61 per share, on revenue of NT$144.15 billion.
WT Microelectronics plans to close the deal on Oct. 1 and delist Maxtek, Yang said.
The transaction still has to be approved by shareholders, who are scheduled to meet on June 26.
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