OmniVision Technologies' CameraCubeChip

OmniVision Technologies

OmniVision Technologies’ CameraCubeChip

Enterprise


U.S. digital imaging chipmaker OmniVision Technologies said it received a buyout proposal from a group of investors led by China’s Hua Capital Management.

The proposed offer price of $29 per share in cash values OmniVision at $1.67 billion and represents a premium of 17.9 percent to the stock’s Wednesday close.

OmniVision shares touched a high of $28.34 in early trading on the Nasdaq.

The investment group includes state-owned Shanghai Pudong Science and Technology Investment Co Ltd, OmniVision said.

The company’s chips are used in smartphone and tablet cameras, including Apple’s iPhones.

OmniVision competes with Sony, Samsung and Himax Technologies.

The company, based in Santa Clara, Calif., is gaining market share against its key competitors in the Chinese smartphone market, helped by strong demand for image sensors and the lower cost of its products, analysts at Baird Equity Research wrote in a note last month.

“We believe OmniVision has the No. 1 market share position in the tier-one smartphone OEM (original equipment manufacturer) segment in China,” the analysts added.

OmniVision said it was evaluating the proposal and that JP Morgan Securities was its financial adviser.

The company reported better-than-expected fourth-quarter profit and revenue in May, helped by higher gross margins and lower inventories.

Up to Wednesday’s close, the stock had risen more than 40 percent this year.

(Reporting by Abhirup Roy and Soham Chatterjee in Bangalore; Editing by Kirti Pandey and Simon Jennings)




1 comments
YoonYoungJo
YoonYoungJo

So soon every US business is going to be technically a state owned business of China. Something that wouldn't even be an issue if businesses if there weren't some serious dangers to it. Now the era of "pay and terrorize as you go" is here, its a cautionary tale. We entered the age, where customers will be at the mercy of state owned companies. Your car blows up because of a faulty ignition switch? Too bad. Your tire blows out on your car while diving? Better keep quiet about it. The bank steals half of all your deposits? Its just virtual money, and you better not make a big deal about it.

Can't happen? LoL, seriously? It already is.

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