Tuesday, July 21, 2015


STATS ChipPAC is undergoing a series of corporate action in the lead-up to the voluntary conditional cash offer by Jiangsu Changjiang Electronics Technology (JCET).

Prior to the buyout, STATS will spin out its Taiwanese subsidiaries into a private HoldCo, in which entitled shareholders can opt to either receive:
1) one HoldCo scrip for each STATS share held, or
2) cash of US$0.0336568 ($0.0455) per share

As part of the restructuring, STATS will make a capital reduction of US$0.0068113 ($0.00915) per share and conduct a 1-for-11,011 non-renounceable rights issue of 4% perpetual security at US$1,000 each.

Subsequently, JCET will conduct the buyout of STATS at $0.46577/share, subject to approval from the State Administration of Foreign Exchange of the PRC,

Majority shareholder Temasek Holdings, which owns 83.8% of the chip tester, has provided an undertaking to accept the JCET cash offer, as well as to fully underwrite the rights issue.

When the offer acceptance crosses the 90% mark, JCET intends to exercise its right to compulsorily acquire all remaining shares.

In a brief, the counter will go ex-all tomorrow (9 Jul) for:
1) Capital reduction of US$0.0068113 ($0.0092);
2) Entitlement of 1 Taiwan HoldCo worth US$0.0336568 ($0.0455) for every STATS ChipPAC share;
3) Entitlement of 1-for 11,011 fully-underwritten non-renounceable rights issue of 4% perpetual security at US$1,000 each.

Shareholders will therefore stand to receive a total of $0.52047 for each STATS share, comprising:
- US$0.0068113 ($0.0092) from the capital reduction
- Cash of US$0.0336568 ($0.0455) in lieu of 1 Taiwan HoldCo share
- $0.46577 cash offer by JCET

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