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Pixelworks completes sale of Shanghai semiconductor subsidiary
Pixelworks has completed the previously announced sale of its Shanghai-based semiconductor subsidiary, Pixelworks Semiconductor Technology (Shanghai), to a special purpose entity led by VeriSilicon Microelectronics (Shanghai).
The transaction resulted in net cash proceeds of approximately RMB 357 million (around USD 51 million) for Pixelworks, after transaction costs and withholding taxes paid in China. An additional RMB 8.7 million (approximately USD 1.2 million) has been placed in escrow and will be released following the resolution of certain tax-related matters in China.
As part of the transaction, Pixelworks transferred all outstanding shares in its Shanghai subsidiary to the buyer. Upon closing, all previously existing repurchase rights held by other former shareholders of the subsidiary were fully released.