Thursday, September 18, 2014

Hua Capital Hires Bank of America to Fund Omnivision Bid

Bloomberg: Hua Capital Management Ltd., a Beijing-based private equity firm, hired Bank of America Corp. to provide funding for its $1.7b bid for Omnivision. Steven Zhang, president of Hua Capital, declined to comment on specifics of the deal, including how much funding Bank of America will provide.

Hua Capital was chosen in June to manage the chip design and testing fund under the Beijing government’s 30 billion-yuan ($4.9b) Semiconductor Industry Development Fund. The Semiconductor Industry Development Fund was set up in December last year to help finance China’s chip industry growth and assist with mergers and acquisitions.

3 comments:

  1. Bank of America is going to fund the Chinese government takeover of a US company? What that Marx saying about capitalists and rope?

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  2. Apparently, Hua Captial thinks the way to "help finance China’s chip industry growth" is by acquiring US-based IC design company.

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  3. In a recent Image Sensors Americas preso, the speaker pointed out OVT, according to Barrons is among the top companies poised to address the Intenet of Things." In the preso and off the record, the speaker pointed out that if this takeover occurs, which he said it probably will, awaiting the Alibaba IPO to assess the most recent valuation times earnings benchmark, speaker indicated OVT will no longer be in this IoT position. His expectation was that OVT's focus will solely be on driving economies in process, most likely moving away from TSMC over time to address the current cost down required. Speaker stated OVT will most likely serve 28% WW share Chinese phone makers, Lenovo, Huiwei, Xiaomi, Coolpad and Gionee. He said ASP's on low-end smartphones in china are dropping -14% yr. on yr. with ASP's now at $130 USD with BOM cost at <$45 USD in some cases.

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