Diodes Inc. Gets Taiwanese Approval for Lite-On Acquisition

March 31, 2020 by Paul Shepard

Diodes Incorporated announced the Company has received all required regulatory approvals from the Taiwan authorities for its proposed acquisition of Lite-On Semiconductor, which includes the Taiwan Fair Trade Commission (TFTC) approval and the Foreign Investment Approval (FIA) from the Investment Commission of the Ministry of Economic Affairs.

In addition to the Taiwan regulatory approvals, Diodes continues to work closely with their advisors for the transaction, including Jones Day, to comply with all customary regulatory procedures in China. As stated previously, Diodes remains confident the transaction will close as planned once the final regulatory approvals have been secured.

As announced in August, 2019, highlights of the proposed transaction include:

  • Combined trailing twelve months ("TTM") reported revenue of approximately $1.5 billion and positive EBITDA of $333.1 million;
  • Represents next significant step in executing Diodes' strategic growth plan to achieve $2.5 billion in revenue by 2025;
  • Broadens Diodes' discrete and bipolar IC product offerings in Asia with a complementary product portfolio that will benefit from Diodes' more extensive worldwide sales channel;
  • Offers cost-effective wafer fab and product assembly manufacturing capacity, enabling internal sourcing flexibility;
  • Favorable return on investment for LSC's 31.2% ownership stake in On-Bright Electronics;
  • Accelerates repurchase of Diodes' shares outstanding, recapturing LSC's holding of 15.3% of DIOD shares as of June 30, 2019;
  • Expected to result in financial synergies, including operational, manufacturing and administrative efficiencies; and
  • Expected to be immediately accretive to Diodes' GAAP earnings per share.