British silicon chips designer and supplier CSR plc (LON:CSR) on Tuesday said it would sell its wireless technology unit to Samsung Electronics Co Ltd (KRX:005930) for USD310m (EUR252.3m) in cash, as part of plans to focus on high-growth markets.
Additionally, the South Korean consumer electronics group would make a USD34.4m investment in new ordinary CSR shares accounting for a 4.9% stake in the company at a price per share of GBP2.23 (USD3.50/EUR2.84).
The sale of the handset connectivity and location development operations and technology to Samsung would allow CSR to focus on its five growth sectors of Voice & Music, Automotive Infotainment, Indoors Location, Imaging and Bluetooth Smart, step up its plans to achieve higher margins, while giving it a better overall market position, it said.
The transaction is seen to contribute to its EPS next year before the planned return of capital and to have a strong impact on the EPS after the return of capital, CSR said.
CSR wants to return as much as USD285m to shareholders following the deal. It expects Samsung, with its presence in handsets, investment resources, expertise and customer reach to ensure a strong future for the CRS handset unit and its 310 employees.
Completion is expected in the fourth quarter of 2012, subject to regulatory approvals in Korea and other parts and clearance from CSR shareholders.
JPMorgan Cazenove, Slaughter and May and Wilson Sonsini Goodrich & Rosati are advising CSR, while Evercore Partners International LLP and Paul Hastings LLP are acting as advisors to Samsung.