August 31, 2015 / 2:21 PM / 3 years ago

Investment firm Pleasant Lake offers to buy MagnaChip

(Reuters) - Investment firm Pleasant Lake Partners LLC offered to buy analog chipmaker MagnaChip Semiconductor Corp in a deal valuing the South Korea-based company at about $346 million.

MagnaChip’s shares were up 5 percent at $8.12 in mid-morning trade.

The $10-per-share offer of Pleasant Lake, which owns 9.9 percent of MagnaChip, is at a premium of 29 percent to MagnaChip's Friday closing price.(

MagnaChip’s chips are used in smartphones, tablets and television. The company also makes chip-making equipment for analog chipmakers.

New York-based Pleasant Lake said in a letter to MagnaChip on Monday it had requested MagnaChip that it be included in any upcoming auction process, but had not received a response.

MagnaChip established a strategic review committee in June to look for a sale of all or a substantial portion of the company.

The company engaged Barclays as its financial adviser for the process.

MagnaChip’s total revenue fell 5.8 percent to $162 million in the second quarter ended June 30, from a year earlier.

Up to Friday’s close, MagnaChip’s stock had fallen 40.4 percent this year.

Reporting by Kshitiz Goliya in Bengaluru; Editing by Don Sebastian and Maju Samuel

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below