Samsung Electro-Mechanics has narrowed its candidates to buy its wireless communication module business, which includes W-Fi modules, to two companies, TheElec has learned.
There were nine companies that showed interest in buying the businesses initially, but this was first narrowed down to four and now two.
One of the two companies will be named as preferred bidder within the month and start negotiations with Samsung.
The two companies both produce components for Samsung Electronics used in smartphones.
The sales of the wireless communication module business by Samsung Electro-Mechanics likely include the sales rights to Samsung Electronics as well, making it enticing for the two bidders.
KB Securities is underwriting the deal __ Samsung Electro-Mechanics’ asking price is over 100 billion won. A hundred of its employees are included in the deal.
Samsung’s wireless communication module business is under its module solution business __ it produces Wi-Fi and WiGig modules.
Wi-Fi offers close range communication using usually 2.4GHz and 5GHz spectrum while WiGig uses 60GHz mmWave and offer ultra-fast data transfers.
Samsung Electro-Mechanis has split-off parts of its business multiple times since the early 2000s.
Its printer component business split-off to become Bixolon in 2002; its electronic material business became Partron in 2003; its touch screen operation became Smac in 2004; its optical filter business became Nanos in 2005; its optical pickups business became IM in 2006; its surface acoustic wave filter operation became Wisol in 2008; its power tuner and electronic shelf label operation became Solu M in 2015.