Spreadtrum Board Accepts Buyout Offer

Before you go, we thought you'd like these...
Before you go close icon

ChinaFabless 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.

Filed under: Telecom & Wireless Tagged: CHL, FB, SPRD
Read Full Story


S&P 500 2,267.22 -4.67 -0.21%
DJIA 19,766.92 -37.80 -0.19%
NASDAQ 5,549.77 -5.88 -0.11%
DAX 11,596.89 -2.50 -0.02%
HANG SENG 23,049.96 -48.30 -0.21%
NIKKEI 225 19,072.25 177.88 0.94%
USD (per EUR) 1.06 0.00 -0.04%
USD (per CHF) 1.01 0.00 0.28%
JPY (per USD) 115.44 0.68 0.59%
GBP (per USD) 1.23 0.00 0.33%

From Our Partners