Alpha and Omega Semiconductor Limited (AOSL) announced it has entered into an equity transfer agreement to sell approximately 20.3% of the outstanding equity interest in its Chongqing Joint Venture (CQJV) for an aggregate cash consideration of $150 million. The payment will be made in four installments, subject to certain conditions, with the sale expected to close prior to the end of 2025.
Prior to this transaction, AOSL owned approximately 39.2% of CQJV, meaning the proposed sale represents about half of AOSL’s holding. The company expects to recognize a GAAP impairment charge on the equity investment in CQJV for the quarter ended June 30, 2025, which will be proforma out on a non-GAAP basis.
This sale provides significant capital for AOSL to continue investing in technology, R&D projects, and the acquisition of complementary assets, accelerating its efforts to develop and distribute innovative power semiconductor products. Importantly, the transaction does not impact AOSL's ongoing business relationship with CQJV, ensuring continued access to wafer manufacturing and assembly and test capacity under existing agreements.
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