IMI acquires PSi Tech

MANILA, Philippines - Integrated Micro-Electronics Inc. (IMI) of the Ayala conglomerate has taken full control of a local power semiconductor company after buying out its partners for about P23 million.

In a disclosure to the Philippine Stock Exchange, IMI said it acquired the remaining shareholdings of Narra Venture Capital II LP and Narra Associates II Ltd. in PSi Technologies for $500,000.

The purchase of shares increased IMI’s ownership interest in PSi Technologies to 100 percent from its previous 83.25 percent stake.

PSi Technologies, a leading independent provider of power semiconductor assembly and test services to semiconductor firms, posted a robust $34.4 million revenue in the first nine months of 2014, up four percent year-on-year.

“The demand for power semiconductors is on the rise, alongside the growing demand for environment-friendly, energy-saving products,” IMI president Arthur Tan said, referring to PSi Technologies’ strong nine-month revenues.

IMI, the electronics manufacturing services unit of the Ayala Group, made its way into PSi Technologies in 2010 through a sale and purchase agreement which allowed it to own majority or 56 percent of the power semiconductor company.

The acquisition then was seen to strengthen PSi Technologies toward growing and developing its business.

Last month, the Ayala-led firm raised P1.61 billion from a public offering of its common shares and another $22.4 million from a sale of property in Singapore.

IMI earlier said a portion of the proceeds from its maiden share sale would be used for investments in its semiconductor assembly and test services business line.

IMI is one of the largest electronics manufacturing services, power semiconductor assembly and test services company in the world. It operates 14 manufacturing plants across seven countries globally, five of which are in the Philippines.

Its nine-month revenues rose 19 percent to $650.1 million, resulting to a net income of $21 million as of September 2014.

The company is looking to further bolster its operations in Bulgaria, China and the Philippines this year with the proceeds from its public offering.