Delta Electronics Inc (台達電) yesterday announced a cash tender offer to acquire approximately 35 percent to 55 percent of Internet protocol (IP) security solutions provider Vivotek Inc (晶睿科技), as part of Delta’s strategy to broaden its building automation capabilities.
The acquisition will cost between NT$2.8 billion and NT$4.4 billion (US$92.7 million and US$145.7 million), based on Delta’s proposed offer of NT$98 per outstanding common share, Delta said.
“This is a friendly takeover. Delta lacks capability in providing IP security solutions, and the purchase in Vivotek will help fill the gap,” Delta spokesman Jessie Chou (周志宏) said.
IP security solutions are expected to play an important role in providing total solutions in building automation, Chou said.
The cash offer of NT$98 per common share represents a premium of nearly 18 percent based on Vivotek’s 60-day average stock price of NT$83.47, he said.
The tender offer, which is to stretch from today until Sept. 26, will be successful when the tendered shares reach a minimum of 35 percent of the company’s stock, Delta said.
Chou said Delta hopes to have control in Vivotek’s management, but it does not plan to unlist the company from the Taiwan Stock Exchange, or lay off employees.
This is the third merger and acquisition (M&A) deal Delta has initiated in the field of building automation. The firm acquired shares in two building automation companies in Austria and Canada for US$82 million and US$175.7 million respectively last year.
Delta chairman Yancy Hai (海英俊) has said more than once that M&A is the company’s favorite approach to securing long-term growth engines for Delta.
Hai said it is more efficient to gain a larger market share, as well as more clients and technologies through M&A deals.
Hai told investors in March that the company is seeking a bigger M&A target in the field of industrial automation this year.
Delta on July 28 reported net income of NT$4.23 billion for last quarter, which dropped slightly by 1.39 percent from last year’s NT$4.29 billion, but rose 8.18 percent from the prior quarter’s NT$3.91 billion.
The company’s net profit totaled NT$8.15 billion in the first half of this year, little changed from NT$8.17 billion over the same period a year ago, Delta’s filings with the Taiwan Stock Exchange show.
Delta’s cash and cash equivalents totaled NT$60.22 billion as of the end of June, according to Delta’s financial statements.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known