Spreadtrum Gets Buyout Offer From Chinese Government-Owned Company
Jun 21st 2013 1:49PM
Updated Jun 21st 2013 1:50PM
Chinese semiconductor maker Spreadtrum has received a buyout offer valued at up to $1.5 billion from Tsinghua Unigroup, a subsidiary of Chinese government-owned Tsinghua Holdings, Spreadtrum announced today.
Spreadtrum produces chipsets for smartphones and feature phones, as well as for other electronics products. Spreadtrum's turnkey mobile platforms provide the workings of many of the so-called white label brand mobile devices running Google's Android mobile operating system found in low-priced emerging-market smartphones.
Tsinghua Unigroup's businesses include high-technology, bio-technology, real estate, and urban infrastructure construction. Tsinghua Holdings is a state-owned corporation funded by China's Tsinghua University.
Tsinghua proposes paying $28.50 for each American depositary share of Spreadtrum, up to $1.5 billion worth. The per-share offer represents a premium of 20% to its closing price on Thursday. Each ADS represents three ordinary Spreadtrum shares. Tsinghua's offer is non-binding. Spreadtrum shares soared as much as 17% after the announcement.
-- Material from The Associated Press was used in this report.
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