BERLIN (Reuters) – Dialog Semiconductor, with customers including Apple, confirmed on Sunday that it was in advanced talks with Renesas Electronics Corporation about a possible sale, which it estimated at about $ 6 billion.
The discussions centered on a possible cash offer of $ 67.50 per share from British chip designer Dialog, the company said in a statement, representing a 20% premium over Friday’s closing price of $ 56.12. when it had a market capitalization of about 4.3 billion euros ($ 5.2 billion).
A further announcement will be made when appropriate. There can be no assurance that a firm offer will be made for the company, nor as to the terms on which a final offer could be made, ”it added.
Frankfurt-listed Dialog said Renesas is required by law to either announce a firm intention to make an offer by 5:00 p.m. GMT on March 7, or say it has no intention to do so.
Renesas was not immediately available for comment.
The two companies agreed to expand their partnership in August.
Dialog last month gave a positive fourth quarter revenue forecast due to strong demand for 5G phones and tablets.
($ 1 = 0.8304 euros)
Written by Paul Carrel; Additional reporting by Makiko Yamazaki; Editing by Maria Sheahan and Alexander Smith