Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

China's Wingtech to gain control of Dutch chipmaker Nexperia for $3.6 billion

10/25/2018 | 04:30am EDT

HONG KONG (Reuters) - China's Wingtech Technology Co Ltd, the world's largest smartphone contract manufacturer, is acquiring Dutch semiconductor firm Nexperia Holding by buying a majority stake from its Chinese owners for 25.2 billion yuan ($3.63 billion).

Wingtech, a contract manufacturer for China's largest smartphone companies including Huawei Technologies and Xiaomi Corp, said in a stock exchange filing late on Wednesday it plans to pay 18.45 billion yuan to buy stakes from Nexperia owners.

It had announced in September that it will spend 6.7 billion yuan to acquire another owner of Nexperia. Based in the Netherlands, Nexperia was formerly the products unit of NXP Semiconductors.

Wingtech will indirectly own 75.86 percent of Nexperia as a result of the deals, it said. The acquisition is subject to regulatory approval including from the Committee on Foreign Investment in the United States (CFIUS).

The acquisition will value Nexperia at 35.1 billion yuan ($5.06 billion), around one-and-a-half times the $2.1 billion a consortium of Chinese buyers paid for it in 2016, the filing said.

Wingtech said in the filing it is the world's largest smartphone original design manufacturer (ODM) by volume, with more than 10 percent of the global market share.

Nexperia is a component supplier in the semiconductor industry, with clients including Apple Inc and Samsung Electronics.

According to the filing, Wingtech aims to raise up to 4.63 billion yuan in a private placement to fund the deal. Its shares have been suspended since April.

Wingtech said it plans to get into automotive electronics after the deal is completed, currently Nexperia's largest business, as it seeks to benefit from business demand from more sectors in the 5G era.

Chinese regulators earlier this year thwarted Qualcomm Inc $44 billion deal to buy NXP amid escalating trade tensions between China and the United States.

($1 = 6.9433 Chinese yuan renminbi)

(Reporting by Sijia Jiang; Editing by Muralikumar Anantharaman)

By Sijia Jiang

ę Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. -1.72% 146.4356 Delayed Quote.12.28%
QUALCOMM, INC. -2.90% 139.4 Delayed Quote.-5.80%
SAMSUNG ELECTRONICS CO., LTD. -0.38% 78500 End-of-day quote.-3.09%
THE GLOBAL LTD. 0.00% 217 End-of-day quote.-16.54%
US DOLLAR / CHINESE YUAN RENMINBI (USD/CNY) 0.43% 6.5103 Delayed Quote.-0.68%
WINGTECH TECHNOLOGY CO.,LTD 8.06% 94.42 End-of-day quote.-4.63%
XIAOMI CORPORATION -5.80% 24.35 End-of-day quote.-26.66%
Latest news "Companies"
12:06pITISSALAT AL MAGHRIB IAM S A : Abdeslam Ahizoune Re-Appointed As Head of Maroc Telecom's Board
12:05pUS stocks, real bond yields fall after China sell-off, before Fed meeting
12:05pLONDON STOCK EXCHANGE : FTSE 100 falls as Reckitt Benckiser's quarterly sales disappoint
12:05pWAVESTONE : Summary of the Combined Ordinary and Extraordinary Shareholders’ Meeting of July 27, 2021
12:05pWAVESTONE : Implementation of share buy-back program as agreed by the July 27, 2021 Annual General Meeting
12:04pTuan TranPham Joins Azul 3D as Chief Revenue Officer (CRO)
12:04pRIO TINTO : commits funding for Jadar lithium project
12:03pEAGLE BANCORP MONTANA, INC. : Results of Operations and Financial Condition, Financial Statements and Exhibits (form 8-K)
12:03pROCKWELL AUTOMATION : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)
12:03pMICHELIN : RBC gives a Buy rating
Latest news "Companies"