PATEO (HKEX: 02889)

The company announced that on June 2, 2026, after trading hours, it, along with Ping An Capital or a fund managed by it, entered into a memorandum of understanding regarding the potential acquisition of shares in a target company from its controlling shareholder and other shareholders.

The proposed transaction involves the acquisition using cash consideration, with the aim of obtaining a controlling stake and control over the target company.

Focus on the Target Company

The target is a fabless integrated circuit design company specializing in high-performance communication chips.

Its primary business involves the research, development, design, and sale of high-speed optoelectronic chips, high-performance analog chips, and related modules.

The company's optoelectronic chip products serve as core components for optical modules within AI data centers and represent a strategic direction with high demand for domestic supply in China.

Strategic Rationale for the Move

This planned acquisition is intended to drive PATEO's strategic expansion into the upstream semiconductor sector.

If the transaction is successfully completed, PATEO will integrate the target's core competencies in optoelectronic chips, optical modules, and key customer resources into its own operations.

This integration aims to further strengthen the company's integrated "software-hardware-chip-cloud" strategy.

The move is expected to facilitate the formation of a composite industrial structure combining "smart vehicle solutions" with "high-performance communication chips."