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Magnachip jumps on report of takeover interest from Korea's LX Group

Apr. 26, 2022 7:56 AM ETMagnachip Semiconductor Corporation (MX)By: Joshua Fineman, SA News Editor4 Comments

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  • Magnachip Semiconductor (NYSE:MX) rose 17% in premarket trading on a report that South Korea's LX Group is looking to acquire the company.
  • LX Group is expected to submit a letter of intent for Magnachip (MX) as early

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Comments (4)

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Value Digger profile picture
We are talking about a debt-free cash-rich company with low key metrics and strong growth prospects.

Additionally, MX recently repurchased ~2M shares at an average price of $18.51 per share.

Therefore, an agreement below $20 will be a gift to the buyer.

The only way I can imagine a price of about $17 per share is, if the company first pays out a special dividend of about $5 per share to empty its coffers.
1t KRW is USD800m, ~18/share, so not going to happen or something is confused in the source article like net cash gets dividended out first.
Matt, please help with a YouTube
2020 Vision profile picture
Well, happy to see the potential acquirer is from South Korea!! Let's roll.
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