Frankfurt-listed Dialog Semiconductor plc has confirmed that it is in advanced talks with Renesas Electronics Corporation regarding a potential sale, valuing it at around $6 billion. Dialog, a leading provider of battery and power management, Wi-Fi, Bluetooth low energy, and Industrial edge computing solutions, boasts of clients like Apple. Also Read: Apple puts plan of building electric car with Hyundai and Kia on “pause”
Financial details: The discussions between Dialog Semiconductor and Renesas Electronics is based on a possible all cash offer of 67.50 euros per Dialog share for the entire issued, and to be issued, share capital of Dialog. As per the discussions, the deal represents a 20% premium to the Friday closing stock price of 56.12 euros, when it had a market capitalization of around 4.3 billion euros ($5.2 billion).
Renesas is required to either announce a firm intention to make an offer for the Company or announce that it does not intend to make an offer by 7 March 2021.
Both Dialog and Renesas agreed to expand their collaboration in August. Also Read: Clubhouse – A sanctuary for liberal and progressive voices in China
BizTek has not been able to contact Renesas immediately for comment. Also Read: Sony revises profit forecast to $10-bn fueled by PlayStation Plus subscription service, hit anime film ‘Demon Slayer’
What they’re saying: “A further announcement will be made as and when appropriate. There can be no certainty that any firm offer will be made for the Company, nor as to the terms on which any firm offer might be made.”
Dialog Semiconductor updates revenue outlook: On 5 November 2020, Dialog indicated that it expected revenue for Q42020 to be in the range of $380million to $430 million. The Company now expects revenue for Q42020 to be higher and in the range of $436 million to $441 million due to strong demand for 5G phones and tablets.