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.
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