(Adds details, background, advisers)
April 30 OmniVision Technologies Inc, a
maker of chips for smartphone and tablet cameras, agreed to be
taken private by a group of Chinese investors for about $1.9
billion in cash.
Chinese private equity firms Hua Capital Management Co Ltd,
CITIC Capital Holdings Ltd and GoldStone Investment Co Ltd will
pay $29.75 per share for the company, a premium of 12 percent to
the stock's Wednesday close on the Nasdaq.
The company's shares were trading at $28.15 premarket. They
have risen about 36 percent in the past year.
Chinese state-owned investment firms bought several
U.S.-listed chipmakers in the last two years, including Montage
Technology Group, Spreadtrum Communications Inc
and RDA Microelectronics Inc.
OmniVision, whose customers include Apple Inc,
competes with companies such as Sony Corp, Samsung
Electronics Co and Himax Technologies Inc.
The company has a design center and a testing facility in
China and generates nearly 80 percent of its revenue from the
OmniVision Chief Executive Shaw Hong is expected to remain
with the company after the closing of the deal, expected in the
third or fourth quarter of fiscal year 2016.
Reuters had reported in August that OmniVision received a
buyout proposal from a group of Chinese investors.
J.P. Morgan Securities LLC is financial adviser to
OmniVision, while Wilson Sonsini Goodrich & Rosati is the legal
Grandall Law Firm is serving as PRC legal counsel to
OmniVision. BofA Merrill Lynch the financial adviser to the
OmniVision's shares rose 7 percent in extended trading on
Wednesday, after Bloomberg reported that the company was close
to a deal with a group of Chinese investors.
(Reporting by Supantha Mukherjee and Devika Krishna Kumar in
Bengaluru; Editing by Ted Kerr and Saumyadeb Chakrabarty)