SINGAPORE: An Abu Dhabi investment firm has offered to buy Singapore-based Chartered Semiconductor, one of the world's biggest chip foundries, in a bid valued at 3.9 billion US dollars, the firms said Monday.
Advanced Technology Investment Company (ATIC), which is owned by the Abu Dhabi government, offered to buy each Chartered ordinary share at 2.68 Singapore dollars (1.86 US), valuing the company at about 1.8 billion US dollars.
Including Chartered's debt and convertible redeemable preference shares totalling 2.2 billion US dollars, the transaction will have a total value of about 3.9 billion US dollars, the companies said in a joint statement.
Chartered is 62-percent owned by the Singapore sovereign wealth fund Temasek Holdings.
"We believe that by having access to ATIC's long-term capital and related assets, Chartered has an opportunity to bring its skills, capabilities and leadership to the next level," said ATIC chairman Waleed Al Mokarrab.
He said that by acquiring Chartered, ATIC is expanding its investments in the semiconductor industry, which currently consist of an existing facility in Dresden, Germany and another plant under construction in New York.
The offer will have to be approved by Chartered shareholders and sanctioned by the Singapore High Court.
ATIC's offer per share for Chartered represents a premium of 14.2 percent on its 30-trading day volume weighted average price, the statement said.
Chartered, listed in Singapore and on the Nasdaq in New York, makes custom-built microchips for set-top boxes and video games, as well as MP3 and DVD players.
The company, like much of the technology sector, has been badly affected by the global downturn as earnings tumbled in the first quarter of the year.