PE investors complete acquisition of US chipmaker Omnivision
Hua Capital Management, CITIC Capital and Goldstone Investment have completed their acquisition of US-listed chipmaker OmniVision Technologies in a deal worth $1.9 billion.
The consortium paid $29.75 per share for all outstanding shares in the company, according to a regulatory filing. This is the same as the price agreed with the board last April - representing a 12% premium to the previous close - when the involvement of CITIC and Goldstone was disclosed. Bank of China and China Merchants Bank provided debt financing for the transaction.
The first take-private bid of $29.00 per share came in August 2014. It was led by semiconductor industry specialist Hua Capital Management and Shanghai Pudong Science & Technology Investment, a state-owned company under Shanghai's Pudong New Area government.
Founded in 1995, California-based OmniVision manufactures sensors, chips and other components for cameras used in smart-phones and other devices. It outsources wafer fabrication and packaging to third parties, with Taiwan Semiconductor Manufacturing (TSMC) serving as the primary wafer supplier. The two companies have a joint venture, although OmniVision said it would divest this and other Taiwan-based assets in order to secure regulatory approval for the take-private.
Approval was also required from antitrust bodies in the US and China, and from the Committee on Foreign Investment in the US.
There is a strong Asia link on the customer side as well as the supply side, with Foxconn Technology Group and Ningbo Sunny Opotech accounting for approximately 13.8% and 11.5% of revenues, respectively, in 2015. Overall revenue reached $1.39 billion in 2015, up from $1.45 billion the previous year, while net income fell slightly from $94.9 million to $93.4 million.
Beijing-based Hua Capital was founded by an investment team from Tsinghua Holdings and China Fortune-Tech Capital, and primarily focuses on investments in the semiconductor industry. Last year, it participated in a consortium led by SummitView Capital that overcame fierce competition to acquire NASDAQ-listed semiconductor manufacturer Integrated Silicon Solution.
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