Following AMD's acquisition of ZT Systems and a plan to sell the latter's manufacturing business, on August 27, Inventec, which holds 10% of ZT System's shares, announced its agreement to join the sale of ZT Systems as a seller and become AMD's shareholder.
According to the statement, the estimated total transaction value is NT$13,161,260,168 (approximately US$411,289,377 based on an exchange rate of NT$32 to US$1). Inventec said it is selling its stake in ZT Systems to strengthen its financial position and potentially focus on other business areas.
AMD plans to acquire ZT Systems for US$4.9 billion, with 75% of the purchase price to be paid in cash and the remaining 25% in stock. As part of the deal, Inventec will sell its common shares and stock options in ZT Systems. Following the transaction, Inventec is set to receive approximately 884,000 shares of AMD stock.
Since Inventec is a shareholder of ZT Systems and AMD has indicated plans to divest the manufacturing business, there is significant interest in whether Inventec might take over ZT Systems' manufacturing operations. Inventec stated that it cannot provide further comments on this matter at present but will make timely announcements if relevant news arises.
Inventec began supplying servers for major cloud service providers in 2019, including Amazon, Microsoft, and Meta, by investing in ZT Systems. Subsequently, Inventec and ZT Systems collaborated on manufacturing Nvidia's servers, with Inventec handling the front-end assembly of server motherboards (L6) and ZT Systems taking care of assembly and testing (L10) and system integration (L11) in the backend.
Recently, when asked if Wistron, another AI server provider, is interested in taking over ZT Systems' manufacturing operations, chairman Simon Lin said that the initiative currently lies with AMD and that there are no plans at this time due to the many variables involved, so further observation is needed.
