Temasek extends buyout offer deadline for STATS ChipPAC

Temasek has extended, again, the deadline on its buyout offer for Singapore and US-listed chip tester and packager STATS ChipPAC to 18 May.

Temasek Holdings, a Singapore government-linked investment company, is extending the deadline on an earlier offer to buy the shares it does not already own via a subsidiary in STATS ChipPAC, to 18 May, from 7 May. There had been a number of deadline extensions for minority shareholders to sell their shares into the offer first announced at the end of February.

Singapore Technologies Semiconductors, the Temasek subsidiary company said it “does not intend to offer beyond the new closing date” nor will it “revise the offer price” although it reserves the right to do so if a competing offer arises.

Temasek’s attempt to delist the semiconductor service provider quoted on the Singapore and US Nasdaq exchanges values the company at $1.6 billion.

Temasek has offered to buy shares it does not own in STATS for up to S$1.88 a share or $12.30 for each American Depository Share. Temasek offered to pay S$1.75 a share and $11.45 for each ADS in cash, if more than 50 percent of the outstanding shares agree to be acquired after its offer closes. The offer rises to S$1.88 a share or $12.30 per ADS if the shares offered into the offer exceeds 90 percent.

Temasek has acquired 77.6 percent of STATS shares as of 3 May, according to a spokesman.

Temasek’s buyout offer reflects a “change of heart, if not a change in strategy. Until the latest announcement, they have been reducing their holding in STATS in recent years.” Robert Lea, an analyst at UBS Securities said.

The latest move is also seen by some as the start of an exit for Temasek. Goldman Sachs is advising Temasek on the purchase.

Lea added: “We believe acquiring the remaining stake will make it easier to sell the business in its entirety at a later date.”

The offer for the chip tester and packager emerged not long after Taiwan’s Advanced Semiconductor Engineering, the world’s largest chip packager, terminated an exclusivity agreement for a proposed $5.5 billion buyout with The Carlyle Group on 15 February.