According to NEWSCENTRAL, Chinese company China International Development Corp (0264.HK), previously known for leather goods production, is considering acquiring Lonten Semiconductor Co Ltd, a manufacturer of power semiconductors, for up to HKD 9 billion (approximately USD 1.16 billion). The company has signed an agreement with Xu Sichang, chairman of Lonten and owner of 24.81% of its shares, who intends to cooperate with other shareholders to facilitate the completion of the deal. Financing may be secured through cash, share issuance, or a combination of both.
Under the agreement, China International Development has received an exclusive right to conduct thorough due diligence of Lonten’s financial and operational documents for three months, allowing an assessment of the company’s technological and production capabilities. Lonten produces high-efficiency MOSFETs and IGBTs, which are in demand in automotive electronics, charging systems, and industrial power converters. NEWSCENTRAL notes that integrating these technologies with the company’s automotive focus creates significant opportunities for synergy and strengthens its position in the high-tech components market.
According to industry expert Lucas Grant, a semiconductor and manufacturing strategy analyst, if the integration is successful, it will allow the company not only to diversify its business but also to create a strategic platform for growth in the semiconductor and electric vehicle electronics segments.
The deal also carries potential risks, including differences in business models, balance sheet pressure, and the need to manage high-tech assets. NEWSCENTRAL emphasizes that success will depend on strategic planning and careful integration of Lonten’s assets into the existing China International Development structure.
Looking at the long-term prospects, NEWSCENTRAL sees this as an opportunity for the company to transform from a leather goods manufacturer into a technological player in the semiconductor market. NEWS CENTRAL predicts that if the deal is successfully executed, China International Development will be able to strengthen its technological position, expand access to promising markets, and create a platform for sustainable growth in the coming years.