Newport Wafer Fab faces float calls after UK blocks Chinese takeover
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Welsh chipmaker Newport Wafer Fab faces calls to go to the London stock market after UK blocks Chinese takeover
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Calls to take Newport Wafer Fab to the London stock market intensified after the UK blocked the Chinese takeover due to security concerns.
The Welsh microchip maker’s future is in jeopardy after the government ordered Nexperia, which is based in the Netherlands and owned by China’s Wingtech Technology, to reduce its stake from 100 percent to no more than its previous stake of 14 percent.
The ministers said the move was necessary to “reduce the risk to national security.”
Security fears: Newport Wafer Fab’s future hangs in the balance after government orders Nexperia, owned by China’s Wingtech Technology, to reduce its stake
Options for Nexperia include the floating Newport Wafer Fab in London or the risk of the company being picked up by private equity or even nationalized.
An IPO would boost Rishi Sunak and Jeremy Hunt’s plans to make Britain a global technology leader.
Russ Shaw, founder of Tech London Advocates, said the Newport Wafer Nexperia IPO would provide an easy option to divest the 86 percent stake.
He said: ‘Nexperia could certainly try to bring together a consortium of UK fund managers and manufacturers for a float.
In this way, Nexperia can retain its minority interest. Admittedly, the process can be difficult in the market environment.”
Nexperia said it did not accept the national security concerns raised. Toni Versluijs, Country Manager UK of Nexperia, said: ‘We are genuinely shocked. The decision is wrong and we will appeal to have this divestment order overturned.”