Handset chip designer MediaTek Inc (聯發科) plans to fully acquire broadband chip supplier IC Plus Corp (九暘電子) for NT$1.51 billion (US$52.94 million) through one of its subsidiaries, the company said on Sunday.
Airoha Technology Corp (絡達科技), a MediaTek subsidiary, has offered to buy all 68.55 million shares of IC Plus at NT$22 per share, MediaTek said in a regulatory filing.
The figure represents a 15.8 percent premium on IC Plus’ closing price of NT$19 on Friday.
Photo: David Chang, EPA-EFE
IC Plus yesterday rose by the daily limit of 10 percent to NT$20.9 on the Taipei Exchange.
The deal “will help the company develop broadband communications chips and related products, and enhance the company’s competitiveness. The transaction will have a positive impact on the company’s business,” MediaTek said in the filing.
IC Plus, which makes chips used primarily in Ethernet transceivers or switches, would see its shares delisted from the exchange upon the completion of the transaction.
The deal is subject to the approval of shareholders at an extraordinary meeting on Feb. 23.
IC Plus swung into a loss of NT$997 million in the first three quarters of this year, compared with a net profit of NT$157 million in the same period last year.
That translated into losses per share of NT$1.48 in the first three quarters, compared with earnings per share of NT$2.34 a year earlier.
This is the third acquisition launched by MediaTek this year.
Two weeks ago, the company announced plans to acquire a 20 percent stake, or 12.4 million shares, in Asix Electronics Corp (亞信電子) at NT$40 per share through a private placement.
Asix specializes in supplying chips used in high-speed Internet cards.
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