JERUSALEM Dec 4 Israeli chipmaker TowerJazz's
CEO declined to confirm that the company is in talks
to buy three Panasonic plants in Japan and said that reports it
would finance such an acquisition with $100 million in equity
Sources told Reuters last week Panasonic Corp will
sell three chip plants to TowerJazz as the electronics
giant wraps up a multi-billion-dollar restructuring.
Japanese media have reported TowerJazz would pay about $100
million for the plants.
"I am not confirming about Panasonic but Panasonic is a
very, very good semiconductor company with good technologies,"
Russell Ellwanger, TowerJazz's chief executive, told Reuters.
TowerJazz was always keen to find acquisitions to increase
capacity through well-run factories with specialised
technologies, he said.
"Any type of acquisition we look at would be a few million
dollars of cash or equity but nothing more than that," Ellwanger
said. Any acquisition would have to be earnings accretive in the
first year, he said.
The company, which makes chips for smartphones such as
Apple's iPhone and Samsung's Galaxy, as
well as battery chargers and AC/DC adapters, said last month
that sales rose in the first nine months of 2013.
"Business is growing and looks stable coming into next
year," Ellwanger said. "We see nothing but our core business
continuing to grow."
TowerJazz's Nasdaq-listed shares closed at $4.04 on Tuesday,
just above an intraday year low of $4.00, having roughly halved
in value this year.