KUALA LUMPUR: Unisem (M) Bhd executive chairman and managing director John Chia Sin Tet and China’s Tianshui Huatian Technology Co Ltd (TSHT) have launched a RM1.82 billion pre-conditional takeover offer of the semiconductor company.
Unisem said in a statement today that the pre-conditional offer was made at RM3.30 per share, a premium of 11.11 per cent to the stock’s last closing price of RM2.97.
Trading of Unisem shares was suspended today.
Chia is currently Unisem’s single largest shareholder with a 24.28 per cent stake.
The bid is made by Huatian Electronics Group (HK) Ltd (HT Hong Kong) and Huatian Technology (Malaysia) Sdn Bhd (HT Malaysia) on behalf of TSHT, as well as John Chia, his son Alexander Chia Jhet-Wern, and John Chia’s private vehicles, Jayvest Holdings Sdn Bhd and SCQ Industries Sdn Bhd.
The parties had entered into a collaboration agreement today to form a strategic partnership for the expansion and development of both TSHT and Unisem’s businesses, the group said.
The offer is conditional upon approval by TSHT’s shareholders, the issuance of an overseas investment certificate for enterprises from China’s Gansu Department of Commerce, recordation for the offer from the National Development and Reform Commission and the necessary foreign exchange registrations.
“This pre-conditional offer announcement does not amount to a firm intention to make the offer by the joint offerors,” Unisem said.
The offerors intend to maintain the group’s listing status.
The firm offer would not be made unless and until the pre-conditions had been satisfied no later than six months from the date of collaboration agreement, Unisem said.
The parties also agreed that the current management team and operations of Unisem would remain unchanged upon completion of the offer, with an increase in Unisem’s board by three directors nominated by TSHT.
Unisem said the collaboration would enable TSHT to further strengthen its global presence by leveraging on Unisem’s network of customers in Europe and North America.
“TSHT, being essentially China-centric in terms of operations and customers, would benefit from a collaboration with the Unisem in terms of the latter’s geographic spread and different customer profile,” it added.
Unisem will benefit from TSHT’s significant presence in China’s semiconductor industry, being among the largest outsourced semiconductor assembly and test players worldwide.