- O2Micro International Limited (NASDAQ:OIIM) agreed to merge with FNOF Precious Honour Limited subsidiary Rim Peak Technology Limited, becoming an FNOF subsidiary.
- The transaction implied an equity value of the company of $145.9 million.
- The company will become a subsidiary of Right Dynamic Investment Limited (Holdco), owned by Sterling Du, the CEO and the Chair of the Board, and Perry Kuo, CFO, and director, as well as FNOF Dynamic Holdings and certain rollover shareholders.
- Under the agreement, each ADS of the company, representing fifty ordinary shares, will be exchanged for the right to receive $5.00 in cash per ADS without interest.
- The merger consideration represents a premium of 68.9% to the closing price of the ADSs on September 19, before the company announced its receipt of the revised preliminary non-binding proposal letter.
- The company will become a privately held company, and its ADSs will cease to list on the NASDAQ.
- In July, O2Micro reported a second-quarter FY22 revenue decline of 15.8% year-on-year to $22.1 million, beating the consensus of $21.63 million. Earnings per ADS were $0.02, in line with the consensus.
- O2Micro's Q3 revenue forecast stood at $17 million - $19 million, below the consensus of $26.23 million.
- Price Action: OIIM shares traded higher by 21.5% at $3.95 on the last check Friday.
