Himax To Dispose Of Investment In A China-based Operation - Quick Facts

(RTTNews) - Himax Technologies, Inc. (HIMX) announced the company has reached an agreement with a buyer to dispose of a direct investment made over 2007 to 2008. The investment involves a China-based operation providing display driver IC backend processing covering wafer bumping, chip testing and packaging. Himax decided to dispose of the investment as it believed the strategic value of the investment has diminished.

Himax's initial investment amount of $8.96 million represented a minority stake of 14.46% in the investee company. Total proceeds from disposal are $32.00 million with a pre-tax gain of approximately $23.04 million. Gain after tax is estimated to be $20.74 million, representing a contribution of 12.0 cents GAAP net income per diluted ADS.

Himax will use the proceeds from the disposal to partially fund the current year's capital expenditure.