Shares of passive components supplier Walsin Technology Corp (華新科技) moved sharply higher yesterday after its announcement the previous day of plans to acquire a stake in Japan-based Soshin Electric Co.
The demand for its shares was sparked by expectations that Walsin, a supplier of multi-layer ceramic capacitors, chip resistors and other passive components, is to expand its production with the stake in the Japanese company.
Its shares rose 3.86 percent to close at NT$202 on the Taiwan Stock Exchange, outperforming the TAIEX, which closed up 1.19 percent at 13,885.67.
Photo: CNA
On Monday, Walsin Technology said it aims to buy a 35.64-to-50.1 percent stake in Soshin through a tender offer that started yesterday and runs through Jan. 4.
Through its subsidiary, Japan-based Kamaya Electric Co, Walsin Technology would pay ￥460 per share for the Soshin stake during that period, it said.
It would start with 5.56 million shares, or a 35.64 percent stake, and the maximum would be 7.82 million shares, or 50.1 percent, according to the deal.
The estimated cost of the acquisition is ￥2.56 billion to ￥3.6 billion (US$24.55 million to US$34.52 million), which would make Walsin Technology the Japanese firm’s largest stakeholder when the deal is completed on Jan. 12, it said.
The Soshin board at a meeting on Monday expressed support for the deal.
In addition, Soshin’s parent company and largest shareholder, NGK Insulators Ltd, has agreed to the sale of 35.64 percent of its subsidiary to Walsin Technology, but would retain a 5.04 percent stake.
Soshin, which was set up in 1938, has a paid-in capital of ￥3.806 billion and its shares are traded on the First Section of the Tokyo Stock Exchange, according to Walsin Technology.
Soshin produces a wide range of products, such as capacitors, multilayered dielectric filters and low-temperature cofired ceramics, which are used in communications devices, automotive electronics, medical equipment, communications base stations, railways and satellites, Walsin Technology said.
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
NOT OVERLY PESSIMISTIC: While consumer electronics demand remains volatile, MediaTek CEO Rick Tsai said that tariffs would have limited effect on the company Chip designer MediaTek Inc (聯發科) yesterday said revenue this quarter would contract by 4 percent sequentially in the worst-case scenario on softer smartphone demand. Revenue is expected to be between NT$147.2 billion and NT$159.4 billion (US$4.6 billion-US$4.98 billion), compared with NT$153.31 billion last quarter, the company said. MediaTek said demand for smartphone chips would be flat or slide sequentially this quarter, while demand for smart devices and power chips would go up. Mobile phone chips made up 56 percent of the company’s total revenue last quarter. Gross margin of 46 to 49 percent is forecast for this quarter, compared with 48.1 percent last
RSS