Microchip (MCHP) Accumulates A Large Stake In Supertex (SUPX)
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In a 13D filing after the close on Supertex Inc. (Nasdaq: SUPX), another public company Microchip Technology (Nasdaq: MCHP) disclosed that it has recently built up a 5.4% stake (697,400 shares) in the company. The filing is interesting, although Microchip said it has no current intentions of a transaction with Supertex. Microchip and ON Semiconductor (Nasdaq: ONNN) recently pulled out of a joint-bid for Atmel (Nasdaq: ATML).
Microchip said 594,300 shares of Supertex Common Stock were acquired in open market purchases and the remaining 103,100 shares were acquired pursuant to the exercise of put options sold by Microchip. Microchip acquired certain of the shares in open market transactions prior to May 13, 2008. Microchip also has put options covering an additional 870,000 shares.
The aggregate purchase price for the shares of Common Stock purchased by Microchip in open market purchases and pursuant to the exercise of put options was $14.7 million, about $21 per share (current market cap is $20.51).
Microchip said it has no current intention to acquire additional shares of the Issuer's common stock except pursuant to the exercise of similar option-related transactions Microchip also previously entered into. Microchip also said it has no current intention to do so or to undertake any action with respect to any transaction with the Issuer.
We have yet to speak to anyone from Microchip or Supertex about the position. Both companies are involved in the semiconductor space, so while Microchip said they have no intentions of a transaction, a merger could make sense. In November, Microchip and ON Semiconductor (Nasdaq: ONNN) pulled out of a joint-bid for Atmel (Nasaq: ATML) after ON announced that it is withdrawing from the joint proposal due to the weakness in the semiconductor industry.
Microchip said 594,300 shares of Supertex Common Stock were acquired in open market purchases and the remaining 103,100 shares were acquired pursuant to the exercise of put options sold by Microchip. Microchip acquired certain of the shares in open market transactions prior to May 13, 2008. Microchip also has put options covering an additional 870,000 shares.
The aggregate purchase price for the shares of Common Stock purchased by Microchip in open market purchases and pursuant to the exercise of put options was $14.7 million, about $21 per share (current market cap is $20.51).
Microchip said it has no current intention to acquire additional shares of the Issuer's common stock except pursuant to the exercise of similar option-related transactions Microchip also previously entered into. Microchip also said it has no current intention to do so or to undertake any action with respect to any transaction with the Issuer.
We have yet to speak to anyone from Microchip or Supertex about the position. Both companies are involved in the semiconductor space, so while Microchip said they have no intentions of a transaction, a merger could make sense. In November, Microchip and ON Semiconductor (Nasdaq: ONNN) pulled out of a joint-bid for Atmel (Nasaq: ATML) after ON announced that it is withdrawing from the joint proposal due to the weakness in the semiconductor industry.
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