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MagnaChip with its Fab 3 8" Wafer Fabs, Reportedly “in-play”
The business of producing OLED devices and power integrated circuits generates $60-65mm of EVITDA in 2021 given the sharp growth profile.
A source from the investment banking industry said many foreign firms – mostly U.S. and Chinese capital - have expressed their interest and set up meetings with local securities and accounting firms to ready due diligence "
At an EV/EBITDA multiple of 15x would imply an equity value of $1.3 billion, up from its current market cap of ~$800m. There is also downside protection from its $280mm in cash and >$250mm in foundry assets that don't appear on its PP&E given heavily depreciated. (and before any business earnings). MagnaChip is the #2 supplier of DDICs for OLED displays, behind only Samsung.
The business of producing OLED devices and power integrated circuits generates $60-65mm of EVITDA in 2021 given the sharp growth profile.
A source from the investment banking industry said many foreign firms – mostly U.S. and Chinese capital - have expressed their interest and set up meetings with local securities and accounting firms to ready due diligence "
At an EV/EBITDA multiple of 15x would imply an equity value of $1.3 billion, up from its current market cap of ~$800m. There is also downside protection from its $280mm in cash and >$250mm in foundry assets that don't appear on its PP&E given heavily depreciated. (and before any business earnings). MagnaChip is the #2 supplier of DDICs for OLED displays, behind only Samsung.
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Barry Young
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