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.
STRONG INTEREST: Analysts have pointed to optimism in TSMC’s growth prospects in the artificial intelligence era as the cause of the rising number of shareholders The number of people holding shares of chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) hit a new high last week despite a decline in its stock price, the Taiwan Depository and Clearing Corp (TDCC, 台灣集保) said. The number of TSMC shareholders rose to 2.46 million as of Friday, up 75,536 from a week earlier, TDCC data showed. The stock price fell 1.34 percent during the same week to close at NT$1,840 (US$57.55). The decline in TSMC’s share price resulted from volatility in global tech stocks, driven by rising international crude oil prices as the war against Iran continues. Dealers said
PRICE HIKES: The war in the Middle East would not significantly disrupt supply in the short term, but semiconductor companies are facing price surges for materials Taiwan’s semiconductor companies are not facing imminent supply disruptions of essential chemicals or raw materials due to the war in the Middle East, but surges in material costs loom large, industry association SEMI Taiwan said yesterday. The association’s comments came amid growing concerns that supplies of helium and other key raw materials used in semiconductor production could become a choke point after Qatar shut down its liquefied natural gas (LNG) production and helium output earlier this month due to the conflict. Qatar is the second-largest LNG supplier in the world and accounts for about 33 percent of global helium output. Helium is
China is clamping down on fertilizer exports to protect its domestic market, industry sources said, putting an additional strain on global markets that were already grappling with shortages caused by the US-Israeli war on Iran. China is among the largest fertilizer exporters — shipping more than US$13 billion of it last year — and it has a history of controlling exports to keep prices low for farmers. Shipments through the war-blocked Strait of Hormuz account for about one-third of the sea-borne supply. This month, Beijing banned exports of nitrogen-potassium fertilizer blends and certain phosphate varieties, sources said. The ban, which has not
AMAZING ABUNDANCE: Elon Musk has announced plans for a new facility in Texas which would manufacture chips for Tesla and SpaceX to use in robotics and AI Elon Musk said his Terafab project — a grand plan to eventually manufacture his own chips for robotics, artificial intelligence (AI) and space data centers — would be built in Austin and jointly run by Tesla Inc and Space Exploration Technologies Corp (SpaceX). Musk, the chief executive officer of the two companies, said he would start off with an “advanced technology fab” in Austin that would have all of the equipment necessary to make chips of any kind. The project would call for one day supporting 1 terawatt (TW) of computing power per year, the amount Musk expects the companies to
RSS