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Acquiring fellow passive component companies Ralec Electronic and Ferroxcube will help Chilisin Electronics improve its global market share, according to company president Shih-ying Chung. Chilisin is aiming to become a global top-3 passive components supplier, said Chung.

Following these acquisitions, Chilisin could expand its scale with annual revenues topping NT$12 billion (US$382.7 million), Chung indicated.

The merger between Chilisin and Ralec is expected to create a synergy, Chung noted. The two companies will complement each other after the merger, and will be able to provide customers with comprehensive solutions.

Chilisin and Ralec plan to merge through a share swap with Chilisin being the surviving company. Chilisin manufactures mainly inductors and power chokes, while Ralec specializes in chip resistors.

Chilisin is also looking to acquire all of the Ferroxcube shares currently held by Yageo for a total of about EUR133.2 million (US$142.76 million). Chilisin's ferrite core products are shipped mainly to handset, networking and PC companies, while Ferroxcube's main clients are engaged in the industrial, car-use and other high-end fields, Chung indicated.

In addition, Chilisin will make an equity investment in China-based Yuanling Xianghua Electronic, a provider of inductors and ferrite materials. Chilisin's board of directors has approved plans to acquire a 49.9% stake in Yuanling Xianghua for a total of CNY41.17 million (NT$6 million), according to a company filing with the Taiwan Stock Exchange (TSE).

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