Pan Jit International Inc’s (強茂) board of directors last week approved a tender offer for a stake of up to 30 percent in power management IC supplier Champion Microelectronic Corp (虹冠電子), as the diode maker seeks merger and acquisition (M&A) opportunities.
Pan Jit said in a statement on Monday last week that it would offer NT$80.8 per Champion share on the open market from Wednesday to March 17, with the minimum number of shares to be acquired set at 4 million, or a 5 percent stake in Champion, and the maximum set at 24 million, or a 30 percent stake.
The company said it estimates that the tender offer would cost between NT$323.2 million and NT$1.94 billion (US$11.6 billion and US$69.6 million).
Photo: screen grab from Internet
Pan Jit, a maker of semiconductor discrete components — such as diodes, MOSFETs and transient voltage suppressors — said the public offer is mainly for financial investment purposes.
The company would use its own funds to finance the acquisition, it added.
In an M&A opportunity last year, the company acquired a 20 percent stake in connector supplier Alltop Technology Co Ltd (凡甲科技) for NT$1.53 billion to expand its product portfolio and create business synergy.
Champion, which was established in 1998, produces power ICs, power modules, field-effect transistors and fast recovery diodes. The company reported revenue of NT$1.296 billion for last year, up 20.96 percent from 2020. Its net profit last year was NT$401.15 million, or earnings per share of NT$5.03, up from NT$239.75 million in 2020, or earnings per share of NT$3.03.
Pan Jit said that it also seeks to expand its product portfolio, further integrate resources and enhance strategic cooperation with Champion through the deal.
Global demand for discrete components, power ICs and power modules — three major categories of power semiconductors — are expected to grow by a compound annual rate of 7.4 percent from US$36.7 billion in 2020 to US$52.4 billion in 2025 thanks to robust demand for electric vehicles, industrial automation and the green energy business, a projection released by consulting group Omdia showed.
Pan Jit, one of the world’s 20 leading power semiconductor suppliers, would this year continue to benefit from a tight supply of power semiconductors, and greater exposure to high-margin products with automotive and industrial applications, analysts said.
In the first three quarters of last year, Pan Jit reported net profit of NT$1.48 billion, up 1,171.5 percent from NT$680.98 million in the same period of 2020, or an increase in earnings per share from NT$2.05 to NT$4.45. For the whole of last year, revenue totaled NT$13.86 billion, up 32.13 percent year-on-year.
TECH RACE: The Chinese firm showed off its new Mate XT hours after the latest iPhone launch, but its price tag and limited supply could be drawbacks China’s Huawei Technologies Co (華為) yesterday unveiled the world’s first tri-foldable phone, as it seeks to expand its lead in the world’s biggest smartphone market and steal the spotlight from Apple Inc hours after it debuted a new iPhone. The Chinese tech giant showed off its new Mate XT, which users can fold three ways like an accordion screen door, during a launch ceremony in Shenzhen. The Mate XT comes in red and black and has a 10.2-inch display screen. At 3.6mm thick, it is the world’s slimmest foldable smartphone, Huawei said. The company’s Web site showed that it has garnered more than
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
Vanguard International Semiconductor Corp (世界先進) and Episil Technologies Inc (漢磊) yesterday announced plans to jointly build an 8-inch fab to produce silicon carbide (SiC) chips through an equity acquisition deal. SiC chips offer higher efficiency and lower energy loss than pure silicon chips, and they are able to operate at higher temperatures. They have become crucial to the development of electric vehicles, artificial intelligence data centers, green energy storage and industrial devices. Vanguard, a contract chipmaker focused on making power management chips and driver ICs for displays, is to acquire a 13 percent stake in Episil for NT$2.48 billion (US$77.1 million).
RSS