(Yicai) July 15 -- Halo Microelectronics, a Chinese designer of high-performance analog and mixed-signal integrated circuit products, will spend KRW21 billion (USD15 million) to gain control of South Korean chip designer Zinitix.

Wholly owned Halo Microelectronics International will purchase a 30.9 percent stake in Zinitix from Seoul Electronics & Telecommunications and two individual shareholders at a 9 percent premium over the target company's closing price on July 11, Guangdong province-based Halo announced yesterday, citing a deal HMI and the sellers signed on July 12.

Zinitix's shares [KQ: 303030] closed 3.9 percent down at KRW1,812 (USD249.49) today. They closed at KRW1,751 on July 11.

The deal, which is expected to be completed by Aug. 29, will give Halo the right to name Zinitix's board of directors and control over its business, personnel, and financial decisions, Halo noted, adding that it also plans to appoint Zinitix's senior executives, including the chief financial officer.

The acquisition will help Halo obtain Zinitix's mature patent technologies, research and development resources, and customers, expand its product categories and technical and product layout in the fields of mobile phones and wearable devices, and form strong technical and market synergies with its existing product lines, Halo pointed out.

Halo's shares [SHA: 688173] closed 0.3 percent up at CNY10.53 (USD1.45) in Shanghai today, after earlier gaining as much as 9 percent.

Zinitix reported net losses both last year and in the first quarter of this year. Its main business involves the development and production of various chips and semiconductor devices, including touch controller chips, that are mainly used in mobile and wearable devices, such as smartphones, smartwatches, and tablets.

Zinitix's main products have already entered the supply chain system of Samsung Electronics for smartphones and other consumer electronics, Halo said.

Editor: Futura Costaglione