Silicon Motion Inc. (SIMO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Silicon Motion Inc. (SIMO)

SIMO 88.61

-0.1%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Elroy	7/23/2023 10:18:31 AM
	4 Recommendations Recommended By franklin1 Jim50 Runomo™ Sam Read Replies (1) of 2977

This coming week is "crunch time" on the MXL-SIMO acquisition. The Chinese regulatory agency (SAMR) has not approved the deal. That approval is required for the deal to move forward. The US anti-trust approval (Hart Scott Rodino) was granted 13 months ago. Unfortunately, the US approval only lasts for 12 months, so MXL-SIMO applied again about three weeks ago for US anti-trust approval. I think the US anti-trust approval is likely granted this coming week. If SAMR approves the MXL-SIMO deal next week, that gives MXL ~10-12 days to close the deal before the Aug 7th outside date. That s probably enough time. If SAMR says nothing before the end of next week, I would interpret that as the deal won't close before the Aug 7th outside date. If the deal doesn't close by Aug 7th, then......lots of options. 1-MXL pays $160m to SIMO, and walks away. We await SIMO's reinstatement of the dividend. SIMO should have about $450 cash and no debt at that point. 2- MXL and SIMO agree to extend the same deal by XX months. I'm not sure if the process to do this is in the deal filings, but when they submitted the second "long form" filing to SAMR in Q3 last year they said the deal is expected to close in Q2 2023, Q3 2023 or later. "Or later" implies that there is some way to extend the deal if there is a delay past Q3 2023. 3- MXL and SIMO negotiate a lower deal price, and wait for Chinese approval. This would require SIMO shareholder approval again. Some say this option is likely since semi valuations have declined quite a lot from the date the deal was announced. 4- Something else! Also, we have MXL reporting Wed and SIMO reporting Thursday this week.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next