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China Int’l Development ditches leather for power semiconductors

The leather goods maker has signed an MOU to acquire power semiconductor maker Lonten, after an earlier deal to invest in a blockchain company collapsed.

If leather isn’t working for you and neither is blockchain, then what do you do next?

Power semiconductors seems to be the answer, at least if your name is China International Development Corp. Ltd. (0264.HK), which on Friday announced a sort of “Mouse that Roared”-type deal by saying it plans to acquire a company much larger than itself. It doesn’t take much detective work to figure out the deal, if completed, would represent a backdoor IPO by Lonten Semiconductor Co. Ltd., a maker of power semiconductors based in Xi’an, capital of Northwest China’s Shaanxi province.

We say “if completed” here, because it looks like there’s a good chance that this deal may not make it to fruition, at least based on shareholder reaction after publication of the news. China International Development’s stock didn’t do much on Monday, the first trading day after the announcement, trading both above and below its last closing price during the morning session, before closing up about 5% at the midday break.

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