Singapore’s Temasek Holdings has offered to buy chip-packaging company Stats ChipPac in a deal worth about S$2.4 billion (US$1.6 billion).
Temasek, an investment company that is owned by Singapore’s government, made the offer through a wholly owned subsidiary, Singapore Technologies Semiconductors Pte. Ltd. (STS), which already owns about 35.6 percent of Stats ChipPac.
“STS has been a long-term shareholder of Stats ChipPac and continues to believe in the prospects of the company,” Temasek said in a statement. The chip-packaging company is listed on Singapore’s stock exchange,
Chip-packaging companies, which offer test and assembly services for semiconductors, have drawn attention from investors as demand for chips remains strong. Last November, venture capital firm The Carlyle Group LLC made a US$5.5 billion offer for Taiwan’s Advanced Semiconductor Engineering Inc. (ASE), the world’s largest chip-packaging company.
That deal has not been finalized, and talks are continuing between the two companies, ASE said last month.
Temasek’s offer to buy the remaining 64.4 percent of Stats ChipPac shares was priced at S$1.75, an 18 percent premium over the closing price of the shares on Feb. 28. The offer is contingent upon the ability to acquire at least 50 percent of the shares in Stats ChipPac. If the deal leaves Temasek with more than 90 percent of the company’s shares, the offer price will be increased to S$1.88 per share, it said.
In a filing with Singapore Exchange Ltd., Stats ChipPac said it would appoint an outside adviser to advise the board of directors on Temasek’s buyout offer.
In addition to its existing stake in Stats ChipPac, Temasek also holds a stake in Chartered Semiconductor Manufacturing Ltd., a contract chip manufacturer in Singapore.
