Pan Jit International Inc’s (強茂) board of directors last week approved a tender offer for a stake of up to 30 percent in power management IC supplier Champion Microelectronic Corp (虹冠電子), as the diode maker seeks merger and acquisition (M&A) opportunities.
Pan Jit said in a statement on Monday last week that it would offer NT$80.8 per Champion share on the open market from Wednesday to March 17, with the minimum number of shares to be acquired set at 4 million, or a 5 percent stake in Champion, and the maximum set at 24 million, or a 30 percent stake.
The company said it estimates that the tender offer would cost between NT$323.2 million and NT$1.94 billion (US$11.6 billion and US$69.6 million).
Photo: screen grab from Internet
Pan Jit, a maker of semiconductor discrete components — such as diodes, MOSFETs and transient voltage suppressors — said the public offer is mainly for financial investment purposes.
The company would use its own funds to finance the acquisition, it added.
In an M&A opportunity last year, the company acquired a 20 percent stake in connector supplier Alltop Technology Co Ltd (凡甲科技) for NT$1.53 billion to expand its product portfolio and create business synergy.
Champion, which was established in 1998, produces power ICs, power modules, field-effect transistors and fast recovery diodes. The company reported revenue of NT$1.296 billion for last year, up 20.96 percent from 2020. Its net profit last year was NT$401.15 million, or earnings per share of NT$5.03, up from NT$239.75 million in 2020, or earnings per share of NT$3.03.
Pan Jit said that it also seeks to expand its product portfolio, further integrate resources and enhance strategic cooperation with Champion through the deal.
Global demand for discrete components, power ICs and power modules — three major categories of power semiconductors — are expected to grow by a compound annual rate of 7.4 percent from US$36.7 billion in 2020 to US$52.4 billion in 2025 thanks to robust demand for electric vehicles, industrial automation and the green energy business, a projection released by consulting group Omdia showed.
Pan Jit, one of the world’s 20 leading power semiconductor suppliers, would this year continue to benefit from a tight supply of power semiconductors, and greater exposure to high-margin products with automotive and industrial applications, analysts said.
In the first three quarters of last year, Pan Jit reported net profit of NT$1.48 billion, up 1,171.5 percent from NT$680.98 million in the same period of 2020, or an increase in earnings per share from NT$2.05 to NT$4.45. For the whole of last year, revenue totaled NT$13.86 billion, up 32.13 percent year-on-year.
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