David Zanoni • 25 Comments
Aug. 31, 2015, 10:56 AM
- Pleasant Lake Partners, which currently owns 9.9% of MagnaChip (MX +5.7%) has offered to buy the Korean analog/mixed-signal chipmaker for $10/share in cash (roughly $345M). The offer is "subject to confirmatory due diligence and the negotiation of definitive transaction documents." (13D filing)
- Pleasant Lake: "[T]he accelerating pace of consolidation in the semiconductor industry, coupled with what believe are Magnachip’s strategically valuable assets and intellectual property, has led us to make this Proposal. We have consistently heard from other shareholders that the status quo at Magnachip is not acceptable and that the Company, in whole or in part, would be worth significantly more to strategic acquirers than as a standalone entity."
- MagnaChip has risen to $8.17. Pleasant Lake's proposal letter offers few details on how a purchase will be financed. The firm has previously argued MagnaChip's fabs and IP have value to potential acquirers.
- Last month: MagnaChip exploring strategic alternatives, including potential sale
Jul. 24, 2015, 12:58 PM
- Buried within the recently-filed proxy materials for MagnaChip's (MX +2%) annual meeting: The company discloses its board has formed a strategic review committee that is "reviewing, considering and evaluating strategic alternatives that may be available to the Company, including the potential sale of all or a substantial portion of the Company."
- A long list of small and mid-cap chipmakers have been acquired amid the industry's ongoing M&A wave. MagnaChip investor Pleasant Lake Partners (9.95% stake) recently called on the company to "redouble its efforts and be proactive in unlocking and enhancing shareholder value."
Apr. 1, 2014, 3:58 PM
- The Nikkei reports Apple (AAPL +0.9%) is in talks with Renesas (RNECF) to buy its 55% stake in iPhone LCD driver IC supplier Renesas SP Drivers, and is looking to acquire it for ¥50B ($479M).
- Sharp (SHCAY) owns 25% of Renesas SP, and Taiwan's Powerchip 20%. Sharp is expected to sell its stake to Apple if the company asks for a a deal after buying Renesas' interest.
- Apple, which already develops its own app processors and fingerprint sensors, reportedly "wants to meld the design of core display components into overall product development."
- A deal could be a positive for Himax (HIMX +3.9%) and MagnaChip (MX -0.6%), given Renesas SP's other clients would start looking for alternative LCD driver suppliers. Renesas SP has an estimated ~33% share of the market for small and mid-sized LCD drivers/controllers. It had revenue of ¥60B ($575M) during the fiscal year ending March 31.
- Earlier: 4.7" iPhone LCD production reportedly set to start
Jan. 27, 2012, 3:59 PM
MagnaChip (MX +8.8%) jumps after announcing earlier that its Korean subsidiary is acquiring Dawin Electronics, a privately held South Korean semiconductor company that designs and manufactures Insulated Gate Bipolar Transistor, Fast Recovery Diode and MOSFET modules. Terms of the deal were not disclosed.| Jan. 27, 2012, 3:59 PM