STATS ChipPAC

STATS ChipPAC: STATS provided a performance update for its upcoming 2Q15 results, as the group is undergoing a corporate restructuring in the lead-up to the voluntary conditional cash offer by Jiangsu Changjiang Electronics Technology (JCET).

For the overall group, revenue is expected to fall 6%-8% m/m and drop 15%-17% y/y due to the sluggish demand in the semiconductor industry, particularly from:

1) Smartphones sales in emerging market
2) Product transition in the high-end smartphones segment
3) Weaker demand in the PC segment

Specifically for its Taiwanese subsidiaries, as shareholders may choose to receive either scrip or cash in the HoldCo following the spin off, revenue is expected to come 6% lower m/m and 23% below y/y, further exacerbated by one-time new product orders in 2Q14.

The counter went Ex-All today for:
1) Capital reduction of US$0.0068113 ($0.0092);
2) Entitlement of 1 Taiwan HoldCo 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.

The current share price is now trading close to the JCET buyout offer at $0.46577/share.