Boston, MA 08/15/2014 (wallstreetpr) – According to recent reports, the US digital imaging chipmaker company OmniVision Technologies, Inc. (NASDAQ:OVTI) has received buy-out offer from Chinese investors. One of these investors is a state-owned firm. The Chinese investors measure OVTI at $1.7 billion.
Details Of The Transaction:
If OmniVision Technologies, Inc. (NASDAQ:OVTI) accepts the proposal, then things will not be that easy for Chinese investors as they will have to face the scrutiny from CFIUS (Committee on Foreign Investment in the United States). It is not the first time when any Chinese firm will face such problems. There have been several cases in the past in which Chinese firms had to face scrutiny issues from the government. The main concern of US government over these issues is but the illegal use of cyber information and stealing of technology for military purposes.
When reporters tried to take expert comment and contacted Tim Keeler, a partner at lawyer firm Mayer Brown LLP, he said, “No matter what type of investment it is, but whenever there will be a new investment coming from China in USA, it will be looked at very carefully. The reasons are obvious and known to everyone.” OmniVision Technologies, Inc. (NASDAQ:OVTI) is a renowned name in the field of manufacturing of chips for tablet cameras and smart phones, including chips for iPhone as well.
CFIUS, headed by Treasury secretary is looking after this investment. The main objective of this committee is to look after those kinds of investment-matters that allow foreign investors to take ownership of US businesses. A group of Chinese investors that have made a proposal to OmniVision Technologies, Inc. (NASDAQ:OVTI) includes Hua Capital Management Ltd, Technology Investment Co Ltd. and state-owned Shanghai Pudong Science. The group is headed by the Chinese firm Hua Capital Management Ltd. China is behind the chip-making technology for a long time; hence, the deal is supposed to face a lot of scrutiny issues in the future.
