Mediatek to list Subsidiary
Mediatek (2454.TT) the 2nd largest company in Taiwan (market cap) and the largest producer of 4G and 5G chipsets (units) is preparing to list its Bluetooth chip subsidiary Dafa/Airoha (pvt) and is making the applications for listing on the TSE Emerging Market board, which is a prerequisite for listing on the TSE. The company is expected to apply for full listing on the TSE after the necessary 6 months on the Emerging Market board, with its performance setting the tone for pricing on the TSE. The listing is targeted toward attracting engineers and workers in the semiconductor space to Dafa, as competition from other semiconductor companies in Taiwan for talent has become quite fierce. As bonuses are roughly evenly divided across all divisions at Mediatek, regardless of performance, the idea of an independent public company takes ‘sharing’ out of the bonus mix and opens the potential for higher rewards for performance.
Dafa provides Bluetooth devices to Sony (SNE), Apple (AAPL), Xiaomi (1810.HK) and JBL (pvt[1]) among others and a 10% stake in the company was sold to a group of VCs for NT$650/share, which was the largest semiconductor deal in the Taiwan VC world over the last few years. Given 145m shares, the valuation for that transaction would be ~$3.3b US. The Emerging Market listing is expected in May or June.
[1] JBL is owned by Harman International, who is owned by Samsung.
Dafa provides Bluetooth devices to Sony (SNE), Apple (AAPL), Xiaomi (1810.HK) and JBL (pvt[1]) among others and a 10% stake in the company was sold to a group of VCs for NT$650/share, which was the largest semiconductor deal in the Taiwan VC world over the last few years. Given 145m shares, the valuation for that transaction would be ~$3.3b US. The Emerging Market listing is expected in May or June.
[1] JBL is owned by Harman International, who is owned by Samsung.
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