(JW Insights) Aug 11 -- Tsinghua Unigroup(紫光集团), China’s leading chip design company, is considering options including a sale of its French smart-card components maker Linxens, as it emerges from a contentious restructuring, reported Bloomberg on August 10, citing people familiar with the matter.

The Chinese tech giant has been speaking with prospective financial advisers after receiving interest in the company, the people said, asking not to be identified because the matter is private. Other options Unigroup is considering for Linxens include a stake sale and an initial public offering, according to the source.

A transaction could value Linxens at €2 billion ($2.2 billion) to €3 billion, the people said.

Private equity firms and other companies in the industry have shown early interest in a deal for the asset, the people said. Considerations are preliminary and Unigroup could decide against pursuing a transaction, they said. A representative for Unigroup declined to comment, reported Bloomberg.

State-affiliated chipmaker Unigroup was sold in a $9 billion takeover last year following a difficult restructuring. Once associated with the prestigious Tsinghua University, the company struggled after years of heavy spending. A consortium led by JAC Capital acquired Unigroup and is exploring ways to reduce its debt, including asset sales and a potential initial public offering for Unisoc, its main chipmaking arm.

Unigroup acquired Linxens from private equity firm CVC Capital Partners in 2018. It designs and makes microconnectors for smart cards and RFID antennas for security, identity and the Internet of Things, according to the Bloomberg report.

(Gao J)