OmniVision Technologies Gets $29/share Takeover Offer From Chinese Group

(RTTNews) - Digital imaging solutions provider OmniVision Technologies Inc. (OVTI) said Thursday that it has received a preliminary non-binding takeover offer of $29 per share from a group of investors led by Chinese investment management company Hua Capital Management Ltd.

Santa Clara, California-based OmniVision has diversified its business into multiple geographies, especially in Asia, and is seeing growth in emerging automotive as well as security markets. The company is also working on products that have long-term potential.

OmniVision's key products include CameraChip and CameraCubeChip, which are integrated, single-chip CMOS image sensors for consumer and commercial applications, including mobile phones and tablets, surveillance systems and medical imaging systems, among others.

In their proposal letter dated August 12, a group of investors led by Hua Capital Management or HCM has proposed to acquire all of the outstanding shares of common stock of OmniVision for $29 per share in cash. The offer price represents a premium of 17.9 percent to OmniVision's closing stock price of $24.60 per share on Wednesday.

The investment group led by HCM includes Shanghai Pudong Science and Technology Investment Co. Ltd., a Chinese state-owned limited liability company, established directly under the Pudong New Area government of Shanghai.

OmniVision said its board of directors is reviewing and evaluating HCM's proposal, but has not made any decision with respect to the proposed transaction.

OmniVision has retained JPMorgan Securities LLC as its financial advisor and Wilson Sonsini Goodrich & Rosati, P.C. as its legal counsel.

OVTI is currently trading at $24.60, up $0.35 or 1.44 percent on a volume of 984,563 shares.