Menu
KrASIA
News

Chinese chipmaker takes over parent company of Paris-based Linxens for USD 2.6 billion

Written by Song Jingli Published on 

Share
This ensures a safe and stable supply of chip components.

Chinese chipmaker Guoxin Micro, which is controlled by Tsinghua Holdings, disclosed Monday that it plans to issue new shares to fund its acquisition of Ziguang Liansheng, an investment vehicle set up to buy Paris-based chip component maker Linxens.

The Chinese chipmaker said in a filing with the Shenzhen Stock Exchange that new shares will be priced at 90% of market prices, It will spend about RMB 18 billion (USD 2.6 billion), on Ziguang Liansheng, with changes subject to final auditing results.

Ziguang Liansheng’s shareholders have approved this deal, said Guoxin.

This acquisition will help it build a smart security chip supply chain, Guoxin said, adding that Linxens will provide it with a “safe and stable” access to micro-connectors in the future. The firm already provided these components for Guoxin Micro to make chips in 2018.

Guoxin said it can also leverage on Lixens’s sales channels and clients bases in countries including France, Germany, Singapore, and Thailand to enlarge market share and improve competitiveness.

Guoxin closed at RMB 46.6 (USD 7.2), up by 10%, the daily upper limit for price fluctuation in Chinese A-share markets.

Contact the writer at [email protected]

Share

You might like these

  • News

    Xiaomi stock dives after blacklisting by US

    By 

    Song Jingli

    15 Jan 2021    03:20 AM

KrASIA InsightsKrASIA Insights

  • What should have been a smooth-sailing ride for WhiteHat Jr after getting acquired by edtech giant Byju’s, it turned out to be a rocky one.

    Insights

    Coding, campaign, and controversies: WhiteHat Jr’s journey from highflyer to the eye of storm

    By Moulishree Srivastava

    14 Jan 202109:33 AM

Most PopularMost Popular

See All