Drew acted for Jiangsu Changjiang Electronics Technology (JCET) in its $1.03 billion takeover offer for STATS ChipPAC
02 Jul 2015
Drew & Napier acted as co-lead counsel for JCET in its $1.03 billion takeover offer for SGX-listed semiconductor company STATS ChipPAC Ltd., one of the largest M&A deals in Singapore so far this year. A highly complex structured deal, Drew has also been acting on the financing aspects of the deal both on the syndicated finance as well as in relation to the perpetual securities offer.
Singapore Technologies Semiconductors Pte Ltd (STSPL), a wholly-owned unit of Temasek Holdings, which has a controlling stake in STATS ChipPAC, has agreed to accept the cash offer, announced last Friday, from a consortium led by China's JCET to buy out the company with the intention of taking it private.
As part of the offer agreement, STATS ChipPAC announced a proposed offering of perpetual securities by way of a non-renounceable rights issue to raise gross proceeds of US$200 million. The perpetual securities will be offered to shareholders on the basis of one perpetual security for every 11,011 shares held by shareholders as at the books closure date.
Subject to certain conditions, STSPL has undertaken to subscribe for both its pro rata share of the perpetual securities and all other perpetual securities not subscribed by the other shareholders, up to an aggregate maximum amount of US$200 million.
JCET, listed on the Shanghai Stock Exchange, is China’s largest electronics packaging service firm. STATS ChipPAC is the world’s fourth largest provider of semiconductor testing and assembly services by sales and is about 84 per cent-owned by Temasek.
The M&A team and the Banking & Finance team on this deal were led by Directors Sandy Foo and Farhana Siddiqui, Associate Director Renu Menon, Associates Lin Weihong, Goh Jun Yi and Teri Tan and Trainee Tan Jin Wei.