On the evening of October 26, SG MICRO (ASX: 300661) announced that the company plans to use its own funds, self-raised funds, and/or proceeds from its H-share listing to acquire a total of 58.2878% equity interest in Shanghai Shenguiling Microelectronics Technology Co., Ltd. for a combined price of RMB 833 million.
According to the announcement, this equity acquisition does not constitute a related-party transaction, nor does it qualify as a major asset restructuring under the provisions of the Measures for the Administration of Major Asset Restructurings of Listed Companies. The transaction falls within the approval authority of the board of directors and does not require submission to the company's shareholders' meeting for deliberation.
SG MICRO stated that Shenguiling Microelectronics focuses on semiconductor design for sensor chips and mixed-signal chips, with products covering temperature sensors, temperature and humidity sensors, digital interface chips, and digital-to-analog conversion chips, among many other categories.
The target company's business has strong synergies with the company in terms of market channels, customer resources, and supply chain. Through this acquisition, the company will consolidate advantageous resources from all parties to further improve its product line layout, expand its R&D team capabilities, and enhance its overall competitiveness.
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