(Reuters) -Leather goods maker China International Development Corp said on Friday it is exploring the acquisition of Lonten Semiconductor Co Ltd for up to HK$9 billion ($1.16 billion). The company said it has signed an agreement with Lonten’s largest shareholder and chairman Xu Xichang, who owns a 24.81% stake and will engage with the remaining […]
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Chinese leather goods maker explores semiconductor firm buyout for up to $1.2 billion
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(Reuters) -Leather goods maker China International Development Corp said on Friday it is exploring the acquisition of Lonten Semiconductor Co Ltd for up to HK$9 billion ($1.16 billion).
The company said it has signed an agreement with Lonten’s largest shareholder and chairman Xu Xichang, who owns a 24.81% stake and will engage with the remaining shareholders to facilitate the deal.
China International Development said it expects the proposed transaction to be worth around HK$4.5 billion to HK$9 billion, which it will finance through cash, share issuance or a combination of both.
Under the agreement, China International Development has secured the right to assess and review the records of the power semiconductor devices maker during a three-month exclusivity period.
Principally engaged in leather products, China International Development is also involved in the automobile segment and has been seeking to expand its business in the semiconductor industry in China.
($1 = 7.7860 Hong Kong dollars)
(Reporting by Nichiket Sunil in Bengaluru; Editing by Tasim Zahid)