MediaTek makes an offer for Richtek

MediaTek's board of directors have approved a letter of intend with Richtek, in which the company shall launch a tender offer for Richtek common stock. Under the tender offer, MediaTek plans to acquire a minimum 35% of Richtek’s outstanding shares, to a maximum of 51% of the outstanding shares for NTD 195 per share (roughly USD 5.94). A deal that would cost MediaTek anywhere between USD 310 million to USD 450 million. Upon completion of the tender offer, MediaTek plans to further acquire 100% of Richtek’s outstanding shares and complete the whole deal by the second quarter of 2016, subject to relevant regulatory approvals. “As a global leader with significant presence in smartphones, tablets, and the digital home, MediaTek offers tremendous growth opportunities for power management related products through the cross-platform advantage,” said Mr. Ming-Kai Tsai, MediaTek Chairman & CEO. “Richtek is a leader in analog ICs and provides comprehensive power management solutions to satisfy various customer demand, backed by an experienced management and R&D team. We believe, through the deal, the competitive edges of both companies will be leveraged to maximize the platform synergy, strengthen MediaTek in Internet of Things segment and further enhance MediaTek’s competitiveness in the fast-changing and ever-competitive global semiconductor market.”