Xinlian Integrated Circuit plans to acquire 72.33% of Xinlian Yuezhou’s equity, with a transaction value of 5.897 billion yuan

Xinlian Integration announced plans to acquire 72.33% of Xinlian Yuezhou's equity for 5.897 billion yuan, which will give it full control of Xinlian Yuezhou. The transaction is the largest transaction in the A-share semiconductor industry this year. It is worth noting that despite the huge amount of the transaction, Xinlian Integration did not set any performance commitments for Xinlian Yuezhou, which lost 1.116 billion yuan in 2023. Xinlian Integration plans to purchase 72.33% of Xinlian Yuezhou's equity from 15 counterparties including Binhai Xinxing and Yuanzhi No. 1 through the issuance of shares and payment of cash. The premium rate is 132.77%, which brings the overall valuation of Xinlian Yuezhou to 8.152 billion yuan.