The acquisition king strikes again! Yageo surprises with the acquisition of IC design firm Motech, and the market reacts enthusiastically with a pump.

Investment long wick candle

Updated on 2025-09-12 01:28

Source: DepositPhotos

Passive component giant Yageo (2327) suddenly announced last night that it would acquire Motech at a premium. Today, both stocks opened strong, with Motech even directly soaring to the limit-up.

Kinsus again demonstrates its astonishing merger and acquisition ambitions. Last night (11th) at 6:30 PM, a press conference was held to announce a public acquisition of 28.5% equity in IC design firm Motech (6138) at a cash price of 229.8 per share, which is a 20% premium over the previous day's closing price, totaling nearly 4.9 billion. As soon as the news broke, Motech's stock price jumped directly to the limit up at 210.5 today; Kinsus also surged simultaneously, with an intraday increase of over 7%, reaching a high of 149.

This action, which the market views as a “non-consensual merger,” once again reflects the swift tactics of Yageo Chairman Chen Tai-Ming. Notably, Motech did not issue a response until nearly eleven o'clock at night, stating that it would handle the matter according to the law, but it did not clearly indicate whether it supports this acquisition, adding uncertainty to the transaction.

From the pricing strategy perspective, Yageo's bid of 229.8 NT dollars is close to the historical highest price of 230.8 NT dollars set by Motech, and it is 9% higher than the highest price in the past year, indicating a strong determination for acquisition. The public acquisition period is from today until October 1st, with a minimum threshold of only 5% equity required for the case to proceed.

I have observed that Yageo has been continuously laying out its strategy in the semiconductor component field in recent years, from participating in the private placement of Powertech, investing in Richtek, to now targeting MPS, indicating clear strategic intent. MPS specializes in fan motor driver ICs and power management ICs, with products widely used in laptops, memory, displays, and automotive industrial fields. Although there is some overlap with Yageo's product line, integration is expected to provide customers with a more complete solution.

Chen Tai-Ming, known as the “King of Mergers and Acquisitions,” has certainly earned his title. Just last month, he received approval from Japan to acquire Shibaura Electronics, with a total merger and acquisition amount exceeding 20 billion yuan domestically and internationally. This aggressive expansion attitude raises questions: just how large of an industrial empire does he intend to build?

With the acquisition case initiated, Maoda's short-term stock price will inevitably continue to reflect the premium space, and whether Yageo's surprise acquisition can succeed has also become the market focus. To be honest, in the current trend of consolidation in the semiconductor industry, such a strong acquisition method may be eye-catching, but it might be a necessary means to stand out in a fiercely competitive market.

_* The content of this article represents the author's personal views only, and readers should not use it as the basis for any investment. Before making any investment decisions, you should seek advice from an independent financial advisor to ensure you understand the risks. _ _Contracts for Difference (CFD) are leveraged products that can result in the loss of all your funds. These products are not suitable for everyone, please invest cautiously. _ Read more