Chaun-Choung Technology Corp (超眾), which supplies thermal modules for PCs and networking equipment, yesterday said that Nidec Corp of Japan is to buy a 48 percent stake in the company for NT$4.48 billion (US$146.62 million) via a tender offer.
The New Taipei City-based company said it has obtained the acquisition information from a Nidec filing to the Tokyo Stock Exchange, according to a Chuan-Choung statement filed with the Taiwan Stock Exchange.
Nidec’s board of directors has resolved to acquire a 48 percent stake in, or 41.44 million shares of, Chaun-Choung at NT$108 per share, the company said in a statement posted on its Web site.
The offer represents a premium of 15.51 percent from Chaun-Choung’s closing price of NT$93.5 yesterday.
“Through this tender offer, the company aims to improve thermal management technology and its product development capability through collaboration with Chaun-Choung,” Nidec said.
The Japanese company is proposing a thermal solution by combining motor products with Chuan-Choung’s thermal module and providing it to customers in a wide range of markets, the statement said.
Nidec, which supplies a wide variety of motors, including brushless direct current motors, said that it is facing stricter specification requirements relating to heat dissipation and cooling systems in its industrial segments.
To accommodate such stringent requests, Nidec has to improve its “quality for heat dissipation and cooling by providing added-value propositions to customers with extra value.”
Chaun-Choung, incorporated in 1973, manufactures thermal module products composed of a heat sink, heat pipe and vapor chamber, mainly to the information and communications equipment sector.
Nidec plans to acquire the Chaun-Choung shares from tomorrow to Nov. 21.
The minimum purchase would be 28.84 million shares of Chaun-Choung, or a 33.4 percent stake.
Chaun-Choung’s net profit last year plunged 47 percent to NT$500.27 million from NT$945.83 million in 2016, due to falling prices and increasing costs, according to the company’s annual report.
Earnings per share fell to NT$5.16 from NT$5.79.
Revenue shrank 3 percent year-on-year to NT$7.07 billion from NT$7.3 billion.
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