China's top foundry SMIC (0981) said on Monday that it plans to acquire the remaining 49 percent stake in unit SMNC for 40.6 billion yuan (HK$45.5 billion), giving it full control of the unit.
The deal will be executed through issuing 547.2 million A-shares to five SMNC shareholders, including China’s National Integrated Circuit Industry Investment Fund, SMIC said in a filing to the Shanghai Stock Exchange.
SMNC mainly focuses on 12-inch integrated circuit wafer manufacturing for different process technologies, SMIC said, adding that the deal will help improve the company’s asset quality and support its long-term development.
In a separate filing, SMIC said exiting shareholders and new investors of another subsidiary, SMSC, will boost the unit’s registered capital to US$10.1 billion, from US$6.5 billion previously.
SMIC posted a 9.7 percent third-quarter revenue rise from a year earlier to US$2.38 billion thanks to robust local demand, with profit up 28.9 percent to US$191.75 million. Both beat analysts’ expectations, according to LSEG data.
Reuters
