MediaTek disposes of Andes shares

Jessie Shen, DIGITIMES Asia, Taipei 0


MediaTek through its investment arm has disposed of 1.652 million shares of silicon IP provider Andes Technology at a unit price of NT$420.50 (US$13.20), according to a filing with the Taiwan Stock Exchange (TSE). The total transaction is estimated at NT$694.6 million.

MediaTek is expecting to profit NT$660 million from the transaction. The company still owns 7.91% of Andes.

MediaTek will also retain a seat on Andes' board of directors, according to the IC design firm, which added that the stake sale will not influence the parties' future collaboration.

Andes swung to net losses of NT$96.52 million in the first half of 2023 from profits of NT$196 million a year earlier, with negative EPS of NT$1.91.

Andes has no reason to be pessimistic, company chairman and CEO Frankwell Lin was quoted as saying in previous reports. With the beginning of the traditional high season and the introduction of new products in the second half of this year, the company will promote its business aggressively in an attempt to make up for its lackluster performance in the first half, said Lin.