Singapore firm updates STATS ChipPAC buyout offer as “unconditional”

April 13, 2007 – Saying that all conditions to its cash offer for full ownership of STATS ChipPAC have been met, Singapore Technologies Semiconductors Pte. Ltd. (STS), a subsidiary of state-owned holding firm Temasek Holdings, has declared its offer unconditional, seeking to obtain $115 million in convertible notes and $150 million in convertible subordinated notes.

STS says it has acquired or received valid acceptances representing 60.5% of outstanding ordinary shares, and 51.9% of maximum potential issued share capital of the company. Its offer has been extended until April 30. STS’ overall share (including ones it already held) now represents approximately 67.6% of outstanding shares.

STS’ takeover offer, the same as what it announced on March 1 (~US $1.15/share, $11.45 per American depositary share) represents an 18.2% premium over the company’s Feb. 28 closing price, and a 55% premium over its stock price from six months ago. If the acquisition is closed quickly and STS’ stake exceeds 90%, the offer will be increased to about $1.23/share ($12.30/ADS), a 24% premium. STS would also take about $265 million worth of Stats ChipPAC’s convertible notes due in 2008.

STS already holds a 36.5% share in Stats ChipPAC. It is one of the largest shareholders in Singapore foundry Chartered Semiconductor Manufacturing.

STATS ChipPAC ranked No.4 in worldwide revenues for semiconductor assembly/test firms in 2006, according to recent Gartner data.


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