PXLW - Pixelworks rises after Chinese investors back Shanghai subsidiary

• Pixelworks ( NASDAQ: PXLW ) shares gained 2% pre-market on Thursday after the fabless semiconductor company announced a strategic investment in its Shanghai subsidiary.
• The firm signed an equity transfer agreement with a group of China-based private equity investors for a portion of equity interest in its majority-owned subsidiary, Pixelworks Semiconductor Technology (Shanghai) (PWSH).
• The purchasers have agreed to pay ~$12.9M in exchange for a 2.73% equity interest in PWSH, valuing the subsidiary at ~$471.5M.
• The transaction is expected to close in Sep. 2022. Upon closure, Pixelworks ( PXLW ) will retain an 80.87% equity interest in PWSH.
• Pixelworks President and CEO Todd DeBonis commented, "As demonstrated by this transaction representing nearly 2x the valuation of the previous investment round in August 2021, there is significant interest in both our visual processing technology and the growing market opportunity for our PWSH subsidiary. We believe this strategic investment by established private equity investors in China will serve to further support PWSH's momentum with an expanding number of mobile OEM customers and ecosystem partners in Asia."
• Take at look at PXLW's latest quarterly performance

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