Semiconductor chipmaker Rakon has received an unsolicited, non-binding, indicative proposal. Photo: 123RF
Another New Zealand tech company is in the takeover sights of an unnamed bidder, sending its share price through the roof.
Semiconductor chipmaker Rakon has received an unsolicited, non-binding, indicative proposal from what it called a "credible industry player" to talk about a takeover.
It said the proposal was to pay $1.70 a Rakon share, valuing the company at about $391 million, and nearly three times its closing price on Friday. Rakon's share price closed up 58 cents, or 94 percent, to $1.20 after the bid's announcement.
"The proposal is incomplete and highly conditional and, as a result, there can be no certainty that any transaction will eventuate," Rakon said in a statement to the NZX.
It said it would not have disclosed the confidential approach except it understood some of its shareholders were aware of it.
It declined to make any further comment on the bid.
The takeover would be done through a scheme of arrangement, which requires a lower level of shareholder approval but usually the backing of the target company's directors.
Last month Rakon reported a sharp drop in first half profit to $500,000 from $16m the year before as sales of its products returned to normal after a period of high demand, and warned its full-year result would also be hit.
Rakon made fast chips used in 5G mobile networks, driverless vehicles, spacecraft and a Mars rover explorer.
Overseas investors have developed an appetite for New Zealand technology companies.
So far this year bids have been made and rejected for transport software company ERoad, Metroglass and Sky Network Television.
A billion-dollar takeover of payments technology Pushpay Holdings was initially knocked back after a shareholder revolt, which forced a higher and successful offer.