Himax Technologies, Inc. (ADR)(NASDAQ:HIMX) Reports Disposal Of Investment

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Himax Technologies, Inc. (ADR)(NASDAQ:HIMX) has reached a deal with a purchaser to dispose of a direct investment done over 2007 to 2008. The investment comprises a China-based operation offering display driver IC backend processing including wafer bumping, packaging and chip testing. Total proceeds from disposal comes at $32 million with a pre-tax gain of around $23 million. Gain after tax is projected to be $20.74 million, showcasing a contribution of 12 cents GAAP net income/diluted ADS.

The details

Himax’s preliminary investment amount of $8.96 million showcased a minority stake of 14.46% in the investee firm. The company kept no board representation in the investee firm and has not partaken in its management. It determined to dispose of the investment as it considered the strategic value of the investment has lessened.

The proceeds from the disposal will be utilized to partially fund the heavy capital expenditure for this year. This deal is subject to relevant government nods with closing anticipated to be no later than the close of the fourth quarter, 2017.

Earlier in an unrelated news, Himax Technologies responded to a research report released by Andrew Uerkwitz, an expert from Oppenheimer & Co. While the company respects the research analyst’s opinions, it reaffirms its operational and financial prospects and would caution shareholders that the report did not comprise any input from the firm.

Jordan Wu, the CEO and President of Himax, expressed that the strategic and business initiatives continue to be on track. They have publicly showcased management’s view on their businesses including 3D sensing opportunities and display driver IC segment with extremely consistent messages to the investment group.

They also recently reported 3D sensing total solution in the last week of August. They remain optimistic in their leading role in the 3D sensing supply chain, and demonstrate strong confidence that they will achieve the deliverables on the new and existing growth prospects.

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