Chip Designer Dialog Confirms $6 Billion Renesas Offer Talks
BERLIN: Dialog Semiconductor, whose clients include Apple, confirmed on Sunday it was in advanced talks with Renesas Electronics Corporation about a potential sale, valuing it at around $6 billion.
The discussions centred on a possible cash offer of 67.50 euros per share in British-based chip designer Dialog, the company said in a statement, representing a 20% premium to the Friday closing stock price of 56.12 euros, when it had a market capitalisation of around 4.3 billion euros ($5.2 billion).
“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,” it added.
Frankfurt-listed Dialog said that Renesas is required by regulation to either announce a firm intention to make an offer for by 1700 GMT on March 7, or say it does not intend to do so.
Renesas could not immediately be reached for comment.
The two companies agreed to expand their collaboration in August.
Dialog last month gave an upbeat fourth-quarter revenue forecast due to strong demand for 5G phones and tablets.
($1 = 0.8304 euros)
(Writing by Paul Carrel; Additional reporting by Makiko Yamazaki; Editing by Maria Sheahan and Alexander Smith)