Thursday, December 29, 2011

Hua Hong Semiconductor and Grace Semiconductor complete merger

SHANGHAI, CHINA: Hua Hong Semiconductor Ltd and Grace Semiconductor Manufacturing Corp., two of the leading semiconductor foundries in China, jointly announced the completion of the merger of the two companies.

Hua Hong and Grace entered into a legally binding agreement to effect a merger between the two companies on September 13, 2011. The merger was completed with a stock-for-stock transaction. Under the terms of the agreement, Hua Hong issued new shares to the existing shareholders of Grace in exchange for all Grace outstanding shares.

Chairman of Hua Hong and Grace, Fu Wenbiao, commented: "Hua Hong and Grace are two of the leading players in the Chinese semiconductor foundry industry, both of which have fabs in Shanghai Pudong area. By integrating their manufacturing facilities, process technologies and human resources, Hua Hong and Grace are able to leverage their complementary strengths to further expand their combined product range and customer coverage and to improve economies of scale.

"As a result, the combined company would be able to provide a boarder range of services to our customers, together with increased capacity and stronger R&D capabilities. We are committed to continue to provide high-quality products and services for our customers and are extremely excited about the new prospects both domestically and internationally."

The proforma combined revenue and net income for 2011 are expected to be around $600 million and $100 million respectively.

Barclays Capital acted as sole financial advisor on this transaction.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.