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RF/Microwave??

Spreadrum receives $1.38B offer from China state firm

Posted: 26 Jun 2013 ?? ?Print Version ?Bookmark and Share

Keywords:Tsingua? Spreadtrum? wireless communication?

A Chinese state-owned holding company has shown interest in purchasing Spreadtrum Communications. Tsingua Unigroup recently offered $1.38 billion in cash to buy the wireless communications company.

A leading fabless semiconductor provider based in China, Spreadtrum offers chips for 2G, 3G and 4G wireless communications and is publicly owned with its shares are traded on the Nasdaq exchange.

Unigroup is an operating subsidiary of Tsinghua Holdings Co. Ltd., a solely state-owned company funded by Tsinghua University, one of the leading universities in China. The offer, which was made at $28.50 per American Depository Share, represented a 20 per cent premium over the June 19 closing stock price of $23.73. The offer also came shortly after Spreadtrum announced a big jump in its guidance for second quarter sales.

"We are enthusiastic about Spreadtrum's business and market position globally and here in China, and we see Spreadtrum as an excellent strategic fit with Unigroup's overall commercial objectives," said Zhao Weiguo, chairman and CEO of Unigroup, in a statement.

Tsinghua Holding has built up a portfolio of subsidiary companies operating in information technology, energy conservation and environmental protection, life science and technical services. It's information technology business focuses on personal computers and peripherals, information systems, the Internet and its application, IC chip design and manufacturing processes, digital TV technology and transmission equipment. At the end of 2012 Tsinghua Holdings had total assets of approximately $11.5 billion and net income in the 2012 fiscal year of about $250 million.

The Unigroup proposal is non-binding and is subject to satisfactory due diligence with respect to Spreadtrum and the execution of acceptable definitive agreements, the company said. Tsinghua Holdings said that aggregate purchase price may be funded by a combination of equity and debt financing.

- Peter Clarke
??EE Times





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