The acceptance of the acquisition letter of intent from Samsung's DSP (Digital Design Partner) Alpha Holdings is about to begin, and it is expected that companies or existing design companies that focus on its position and promote new semiconductor design businesses will participate.

According to industry insiders, the sale of consulting firm Shinil plans to receive an intention letter from Alpha Holdings from June 10th to July 5th. Its largest shareholder, Alpha Equity Partners, plans to complete the sale of its 6.71% stake within this year.

According to the report, the sale of Alpha Holdings is a significant opportunity for companies interested in entering semiconductor design and related new businesses, as it holds the position of a Samsung OEM design partner (DSP).

It is reported that the market value of Alpha Holdings is 37.7 billion Korean won (currently about 200 million RMB), and the equity value after deducting the operating premium is about 2.5 billion Korean won. However, to ensure stable operating rights, the acquirer needs to invest more funds as it needs to increase its holdings through third-party targeted issuance.

Alpha Holdings serves as a bridge between semiconductor design companies (Fabless) and semiconductor foundry (Foundry), serving as a design service partner (DSP). It supports semiconductor design optimization to Samsung foundries and assists in the entire process from mass production to packaging. Our main customers include Telecommunications, Hanavision Systems, etc., and we operate an independent Fabless business (remote control receiver chips). As of May this year, Alpha Holdings has 86 employees.

An industry insider said, "Acquiring Alpha Holdings can immediately gain DSP status and achieve a backdoor listing through mergers and acquisitions when needed. The key lies in how many high-quality developers it has and whether the costs required to ensure stable operating rights are reasonable."

It is reported that Samsung's OEM factory believes that the change in the largest shareholder will not affect Alpha Holdings' DSP qualification, making it relatively easy to enter the Samsung OEM factory ecosystem. At present, Samsung has only 5 domestic DSP factories and 3 overseas DSP factories.

What is the background for selling management equity?

At present, the largest shareholder of Alpha Holdings is Alpha Equity Partners, and Nex Energy Global holds 94.12% of the shares in Alpha Equity.

The sale of management equity seems to be affected by the delayed resumption of transactions by Alpha Holdings. Since the stock suspension on April 10th last year, Alpha Holdings has been continuously striving to improve its financial structure and submitting a resumption improvement plan, but encountered difficulties during the resumption process.

Accordingly, the largest shareholder announced their intention to publicly sell. An accounting industry insider said, "Currently, the largest shareholder holds around 6.71% of the shares, and it is expected that the sale will be carried out through the issuance of new shares. Private equity funds and domestic secondary battery companies have been found to be interested in investing.".

In addition, Alpha Holdings is also seeking to sell shares in its affiliated company Hansong Neotech. Alpha Holdings is the largest shareholder of Hansong Neotech, holding 24.45% of the shares as of the first quarter. As a sales manager, Sany Accounting Firm is seeking to sell the equity of Hansong Neotech held by Alpha Holdings externally.

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