AUTOCHIPS:Navinfo’s plans to buy a majority stake in MediaTek’s Chinese subsidiary is under review by the China Securities Regulatory Commission, the chip designer said
Date: Oct 19, 2016
By: Lisa Wang / Staff reporter
Handset chip designer MediaTek Inc (聯發科) yesterday dismissed speculation that a US$497 million
deal to sell AutoChips Inc (傑發) to China’s largest digital map provider Navinfo Co Ltd (四維圖新) has hit a snag, saying the case is being reviewed by Chinese regulators.
Concern about a delay in the transaction dragged down MediaTek shares, which fell to a low of NT$238 before recovering to close at NT$240 yesterday in Taipei trading, down 0.41 percent from Monday.
“Navinfo has submitted the deal to China’s regulator for review in accordance with local rules. The project is undergoing a normal review process,” MediaTek spokesman David Ku (顧大為) said in a Taiwan Stock Exchange filing.
Ku’s remarks came after the Chinese-language Economic Daily News yesterday reported that the review had stalled, because the China Securities Regulatory Commission was concerned that Navinfo might overpay for the acquisition of AutoChips, which has seen falling revenues. [FULL STORY]