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ATIC is a technology investment company wholly-owned by the government of Abu Dhabi in the UAE, while Chartered is a Singapore-based semiconductor foundry that provides wafer fabrication services and technologies to semiconductor suppliers and systems companies.
Under the scheme of arrangement, each Chartered ordinary share will be acquired by ATIC for a cash consideration of SGD2.68 ($1.86) per share. The transaction represents an equity value of approximately SGD2,500 million ($1,739.48 million) and a total value of approximately SGD5,600 million ($3,896.44 million), including debt and convertible redeemable preference shares of approximately SGD3,100 million ($2,156.96 million) as of June 30, 2009.
The price represents a premium of 14.2% to its 30 trading-day volume weighted average price, 26.8% to its 90 trading-day volume weighted average price, and 44.2% to its 6-month volume weighted average price.
The acquisition of Chartered will be made through ATIC International Investment Company LLC, a subsidiary of ATIC. Once the transaction is completed, ATIC will be the sole owner of Chartered.
Earlier on May 29, 2009, according to Reuters, The Business Times reported that ATIC has made an offer to acquire a 60% stake in Chartered from Temasek Holdings. On the same day Chartered has denied of receiving such a bid from ATIC.
Morgan Stanley Asia (Singapore) Securities Pte., Ltd. and Citigroup Global Markets Singapore Pte., Ltd. are acting as joint financial advisors to Chartered, and each providing a fairness opinion to the board of directors of Chartered in connection with the transaction. Deutsche Bank AG is acting as an independent financial advisor to advise shareholders on the fairness of the offer.
Deal Value (US$ Million) 2415.79 Deal Type Private Equity Sub-Category Exit Deal Status Announced: 2009-09-07
Deal Participants
Target (Company) Chartered Semiconductor Manufacturing Ltd.
Deal Rationale
The transaction would allow ATIC to build on the complementary platforms of Chartered and GLOBALFOUNDRIES, with Chartered's customer relationships and capabilities in both 8-inch and 12-inch fabrication, and GLOBALFOUNDRIES' technology expertise, capacity profile and global footprint. By acquiring Chartered, ATIC is expanding its investments in the semiconductor industry which currently consist of a GLOBALFOUNDRIES facility in Dresden, Germany.
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