Chartered to raise funds through rights issue

Sept. 2, 2002 – Singapore – Chartered Semiconductor Manufacturing Ltd., the world’s third largest chip foundry, announced an 8-for-10 rights issue today to raise US$633 million.

Chartered said the rights price was S$1.00 each, a discount of 52% to its share closing price of S$2.10 on Friday, Reuters reported.

Chartered said proceeds would be used for capital expenditure, working capital and general purposes. The foundry also repeated its guidance for the third quarter, expecting a net loss of between $87 million and $90 million.

Singapore Technologies Group, owned by the Singapore government, would subscribe for its entitlement of 60.5%. Merrill Lynch is the financial adviser and underwriter for the portion not already claimed by Singapore Technologies.

Last week, Chartered declined to confirm market speculation that it was planning a rights issue, but analysts said the company, which has suffered a slide of over 30% in its book value due to six consecutive quarters of net losses, needed to raise funds soon to boost its financial ratios and fund its latest fab.

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