Update: Qiao Xing Group Acquires Freescale Division
21st Century Business Herald, 4/28/09
Wu Zhiyang, CEO of Chinese mobile handset vendor CEC Telecom (CECT), a subsidiary of Qiao Xing Mobile Communication (NYSE: QXM), has confirmed that Qiao Xing's de facto parent, Qiao Xing Group, is in negotiations for the acquisition of the mobile chipset business of Freescale Semiconductor. According to Wu, a letter of intent has been signed, with certain details still under discussion. Details of the transaction have not been released, but Wu emphasized that the purchase would not involve publicly traded subsidiaries of the Qiao Xing Group - Qiao Xing Universal Telephone (Nasdaq: XING) and Qiao Xing Mobile Communication (NYSE: QXM).
A source has stated that if the purchase is successful, Qiao Xing Group will establish an independent company in Beijing to operate Freescale's mobile chipset business. At the same time, Dong Defu, CEO of Chinese mobile phone solutions provider TechFaith Wireless (Nasdaq: CNTF), plans to invest in the company as a personal investor. Another unconfirmed rumor suggests that the Beijing government will also make a non-trivial investment in the company.
Editor's Note: Earlier reports have suggested that as part of the purchase Qiao Xing Group would acquire Freescale's core IP as well as 1,600 R&D staff.
Keywords: Qiao Xing Group M&A CECT chipset CNTF Dong Defu Freescale Semiconductor investment Qiao Xing Qiao Xing Universal QXM semiconductor TechFaith wireless Wu Zhiyang XING mobile phone vendor
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