Shares of image sensor maker OmniVision jump after $1.64 billion takeover offer

Economic IndicatorsAssociated Press

Shares of OmniVision Technologies Inc. jumped Thursday after the company said it received a $1.64 billion takeover offer from a Chinese investment firm.

Hua Capital Management Ltd.'s offer, for $29 per share, is non-binding. That means it is just an offer, with no legal force behind it. It works out to $1.64 billion based on OmiVision's 56.5 million shares outstanding as of June 23.

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OmniVision, based in Santa Clara, California, makes image sensors used in mobile phones, webcams and surveillance systems. It said it is reviewing the proposal.

Shares gained $3.26, or 13 percent, to $27.85 in midday trading. Through Wednesday's close, the stock had risen 43 percent this year.