May 17, 2006 — China Resources Logic has offered to double its 26% ownership in semiconductor foundry CSMC Technologies to a majority stake, through a proposed $113 million buyout offer to other shareholders. Seven CSMC shareholders representing nearly 30% of the company’s shares have accepted the offer, according to the companies.
CR Logic hopes that gaining greater control over CSMC’s business will facilitate and complement expansion within each company’s semiconductor businesses, and bolster CR Logic’s plans “to become an influential player in the PRC semiconductor industry,” the company said, in a statement. No changes to CSMC’s business model are planned, except appointment of new board directors.
CSMC raised about $40 million in its IPO in August 2004, but shares have stayed well below the debut price. The foundry posted a $6.8 million net loss in 2005, compared with a $10.2 million profit in 2004, on 2% lower revenues of $78.1 million.