Pixelworks Closes Sale of Subsidiary for RMB 357M
Pixelworks announced the closing of the Company's previously announced transaction to sell its shares in Pixelworks Semiconductor Technology, a company organized under the laws of the People's Republic of China and a subsidiary of Pixelworks, to a special purpose entity led by VeriSilicon Microelectronics. Pursuant to the original share purchase agreement and other previously disclosed supporting agreements between the respective parties involved in the transaction, Pixelworks facilitated the transfer of all outstanding capital stock in Pixelworks Shanghai to the Buyer, resulting in cash proceeds to Pixelworks, net of transaction costs and withholding taxes paid in China, totaling approximately RMB 357M, or approximately $51M. Additionally, approximately RMB 8.7M or approximately $1.2M is being held in an escrow account to be released upon the resolution of certain tax matters in China. In conjunction with the transaction closing, all previous repurchase rights held by other prior shareholders of Pixelworks Shanghai were released in full.
