Spreadtrum Board Accepts Buyout Offer
ThinkstockFabless semiconductor firm Spreadtrum Communications Inc. (NASDAQ: SPRD) and China’s Tsinghua Unigroup announced today that the two companies have agreed to a merger under which Tsinghua will pay $31 per American depositary share (ADS) for Spreadtrum. The deal is worth…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Fabless semiconductor firm Spreadtrum Communications Inc. (NASDAQ: SPRD) and China’s Tsinghua Unigroup announced today that the two companies have agreed to a merger under which Tsinghua will pay $31 per American depositary share (ADS) for Spreadtrum. The deal is worth a total of $1.78 billion. Spreadtrum shareholders must approve the deal, and it is subject to regulatory approvals as well.
Tsinghua first offered $28.50 per ADS for the maker of wireless communications chips in late June. That sent Spreadtrum’s ADS to a 52-week high of $26.69, and the shares have traded at about that level ever since. The shares posted an all-time high of around $29 in November 2011.
Spreadtrum, which is based in China, is a developer of mobile chipsets for smartphones and other mobile devices. The company has supplier agreements with China Mobile Ltd. (NYSE: CHL), the world’s largest wireless company, European telecom giant Orange, and Facebook Inc. (NASDAQ: FB).
Tsinghua said there are no financing conditions to its offer. In its original offer in June Tsinghua said the all-cash offer may be financed by a combination of equity and debt. Today’s announcement does not indicate a closing date for the transaction.
Shares are trading at $30.18 in the premarket this morning, up 14%, and above the 52-week range of $14.50 to $26.69.
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.