Chip manufacturer BelGaN to close after no viable takeover bids received
The candidates who showed interest in a relaunch of bankrupt semiconductor manufacturer BelGaN in recent weeks have not made any serious offers, according to the receivers. As a result, the only industrial chip factory in Belgium will close with the loss of some 440 jobs. The assets will be liquidated.
Five candidates showed interest in the Oudenaarde company, which declared bankruptcy in July. Two weeks ago, the receivers asked potential buyers to provide a final proposal by noon on 5 September. Three proposals were vetted. The names have not been made public but included one European candidate and two from outside the EU.
None of the offers was accepted, receiver Ali Heerman told Belga on Thursday night. “We don’t have any takeover bids worthy of the name,” he said. “They are well below liquidation value. There are little to no guarantees for staff in terms of reemployment and there are no payment guarantees.”
Financial difficulties
As a result, there will be no relaunch of the company with a new owner. Chip technology is a strategic sector and politicians and experts had expressed the hope that the company would remain in European hands.
BelGaN was established 40 years ago as Mietec. It supplies chips for chargers and electric vehicles and specialised in energy-efficient components based on gallium nitride. Experts believe the market will grow significantly but the turnaround was not happening quickly enough for the company, which was facing financial difficulties.
Sales of 120 million euros in 2021 fell to just under 75 million euros in a year. There was a slight recovery in 2023, but it was insufficient to pay the bills and management declared bankruptcy at the end of July.
#FlandersNewsService | The headquarters of BelGaN in Oudenaarde, East Flanders, 22 August 2024 © BELGA PHOTO JONAS DHOLLANDER
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