On November 8, Nexperia signed an agreement with Vishay, a company listed on the New York Stock Exchange, to sell NEPTUNE6 LIMITED (hereinafter referred to as “NEPTUNE6”), the parent company of Newport Wafer Fab (hereinafter referred to as NWF) in the UK, for US$177 million. . From Nexperia’s announcement of the completion of the acquisition in July 2021, to the British government’s mandatory divestment in the name of national security in November 2022, to the signing of the sale agreement on November 8, 2023, the NWF merger and acquisition case has been full of twists and turns, fully reflecting the The pressures and challenges Nexperia has encountered in the process of global development have also fully demonstrated the responsibility and capabilities of the management team led by Nexperia CEO Zhang Xuezheng in the process of international development.
The verge of bankruptcy
Nexperia saves NWF in 2021
On July 5, 2021, Nexperia announced that it had signed a relevant acquisition agreement with NEPTUNE6, the parent company of British chip manufacturer NWF, and its shareholders. After the completion of this transaction, Nexperia holds 100% equity in NEPTUNE6 and holds 100% equity in NWF through NEPTUNE6. Information shows that NEPTUNE6 company’s total assets at the end of fiscal year 2020 were 44.7076 million pounds, and its net assets were -5.1773 million pounds. It was already insolvent and on the verge of bankruptcy at the time of acquisition.
Since the acquisition, Nexperia has formulated a long-term business development plan for NWF, making additional investments to upgrade machinery and equipment and expand personnel. Nexperia’s acquisition saved NWF, which was underfunded and on the verge of bankruptcy.
In the name of national security
British government mandates divestment in 2022
As soon as the news of Nexperia’s acquisition of NWF was disclosed, it immediately aroused resistance and doubts from many foreign parties, believing that NWF’s acquisition by Nexperia would pose a threat to British national security.
In May 2022, relevant British government departments exercised their statutory powers to retrospectively review the NWF acquisition in accordance with the newly effective British National Security and Investment Act, and finally required Nexperia to divest NWF in November 2022 on the grounds that it may endanger national security. After receiving the notification from the British government, Nexperia made it clear that it was dissatisfied with the decision and is still in the appeal process.
Forced sale
Fully reflect the responsibility of the management team
After Nexperia’s acquisition of NWF was reviewed by the British government, Nexperia was attacked by many parties in the geopolitical environment. As the CEO of Nexperia, Zhang Xuezheng and his management team are under tremendous pressure from all parties. On the one hand, they have to deal with the British government’s geopolitical security review and actively seek to publicly address the concerns raised by all parties; on the other hand, they must give priority to NWF’s impact. employees and reduce the negative impact on customers; at the same time, we must continue to promote Nexperia’s globalization strategy, safeguard the interests of local industries, and protect the interests of shareholders.
Due to the British government’s mandatory divestment of NWF, Nexperia was forced to stop its investment planning in NWF. In order to protect the interests of employees and customers, properly entrust the future of NWF, reduce the impact on the local semiconductor industry, and better protect the interests of shareholders, Nexperia chose Vishay as the undertaker to sell NFW equity. From the acquisition to the forced sale, Nexperia’s management team was unfairly treated in geopolitics and experienced many setbacks and challenges. It actively sought solutions for NWF and avoided the British government’s divestiture requirements that would impose negative consequences on NWF’s employees, customers, and Further losses have been caused to local industries and shareholders, which fully reflects the responsibility of Nexperia management under the leadership of Zhang Xuezheng. Especially in the face of the pressure from the British government to divest, the company still attached great importance to employees and customers and took into account the interests of local industries and shareholders during the forced sale process, which fully reflected the corporate values of Nexperia management and set a model for the industry.