Firm to buy out China foundry CSMC for $114M

Acting on behalf of China Resources Logic Ltd, Citigroup Global Markets Asia Ltd has offered $113.5 million to acquire the remaining shares of loss-ridden, silicon foundry provider CSMC Technologies Corp.

The proposed move will give China Resources greater control over CSMC's business in an effort "to facilitate and complement the expansion of the semiconductor businesses of both companies," according to the companies.

China Resources, the electronics manufacturing unit of state-owned conglomerate China Resources Co. Ltd of China (Holdings), already owns a 25.9 percent stake in CSMC.

CSMC has been struggling in recent times. Recently, CSMC saw its annual sales decline by 2.2 percent to $78.10 million in 2005, with an annual net loss of $6.84 million. Earnings before tax, depreciation and amortization dropped by 37.2 percent $17.2 million in 2005 from $27.5 million 2004, the company announced.

- Mark LaPedus
EE Times