TowerJazz announces receipt of $32 million; completed sale of its holdings in HHSL

MIGDAL HAEMEK, ISRAEL & NEWPORT BEACH, USA: TowerJazz, the global specialty foundry leader, announced the closing of the sale of all its holdings in Hua Hong Semiconductor Ltd (HHSL), the parent company of HHNEC, one of Mainland China’s leaders in the field of IC foundry service, in a HHSL share repurchase transaction, for $32 million in cash. TowerJazz’s holdings consisted of 10 percent of HHSL’S shares, valued per GAAP in the amount of $17 million on TowerJazz’s balance sheet.

TowerJazz received the cash from this transaction and expects to record a gross gain in the third quarter of $15 million as a direct result of this sale, and approximately $8 million of net gain (after taking into account expected tax and other payments and fees associated with the transaction).

Chardan Capital Markets, LLC advised TowerJazz on this transaction.