Chilisin Electronics Corp (奇力新), Yageo Corp’s (國巨) inductor affiliate, yesterday announced that it will acquire a 100 percent stake in Mag.Layers Scientific-Technics Co Ltd (美磊) via a share-swap transaction worth NT$682.31 million (US$23.05 million), while aiming to boost its global presence.
“We expect our combined global market share in the inductor industry to exceed 10 percent after the transaction, which will accelerate our progress toward becoming one of the world’s top-three inductor suppliers,” Chilisin chief executive officer Jack Chung (鐘世英) told a news conference at the Taiwan Stock Exchange in Taipei.
The world’s largest inductor manufacturer is Murata Manufacturing Co Ltd with a 13.78 percent market share, followed by TDK-EPC Corp with a 13.42 percent share and Taiyo Yuden Co Ltd with a 13.22 percent share, all of them Japanese firms, Chilisin said.
The company’s main area of growth will be its client base and the production capacity for molding chokes — a type of inductor — after the deal is completed on July 1, Chung said.
The monthly capacity of its large molding chokes will be increased from 100 million to 200 million units, while the capacity of its mini molding chokes is to rise from 400 million to 500 million units per month, Chung added.
Chung said Mag.Layers’ status as a high-end server supplier and the US’ largest electric vehicle maker is expected to benefit Chilisin’s development in the server and automobile industry.
On the other hand, Chilisin is to help Mag.Layers reach markets in Europe, China, Japan and Southeast Asia, he said.
Under the share-swap agreement, Chilisin is to issue 68.231 million new common shares for NT$682.31 million.
The swap ratio is to be every 0.73 new share for one Mag.Layers share.
That would translate into an estimated 15.9 percent premium based on Mag.Layers’ closing price of NT$63.6 on Tuesday, Chung said.
Mag.Layers would terminate its trading on the Taipei Exchange after the transaction is completed, he added.
The companies are to hold a provisional shareholders meeting on March 1 to gain respective approval, Chung added.
Chilisin’s accumulated net income surged 61.9 percent annually to NT$815.13 million, or NT$5.63 per share, in the first three quarters of last year, while Mag.Layers’ combined net profit advanced 29.72 percent to NT$356.35 million, or NT$3.86 per share, over the period.
Chilisin shares on Tuesday rose 2.53 percent to close at NT$101 on the Taiwan Stock Exchange.
The two stocks are to resume trading today.
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