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Sep 14, 2009
Chartered, Eircom get okay
Temasek Holdings is key player in both deals
By Chua Hian Hou
Chartered's independent directors have accepted Deutsche's recommendation, and urged shareholders to 'vote in favour of the offer', the company said in a statement on Monday. -- PHOTO: BT
A FINANCIAL advisory firm appointed to advise minority shareholders on the proposed acquisition of mainboard-listed chip-maker Chartered Semiconductor Manufacturing has approved the $5.6 billion deal.
Deutsche Bank said on Monday that Advanced Technology Investment Company's (Atic) $2.68 per share offer for Chartered's shares was 'fair and reasonable from a financial point of view'.
Chartered's independent directors have accepted Deutsche's recommendation, and urged shareholders to 'vote in favour of the offer', the company said in a statement on Monday.
Deutsche was appointed by Chartered's independent directors to advise minority shareholders on the merits of the Middle East sovereign wealth fund's $5.6 billion offer for the world's third-largest chipmaker.
Chartered's main shareholder, Temasek Holdings, has signed an 'irrevocable undertaking' to support the deal announced last week. With Temasek's 62 per cent stake in the bag, Atic is just 13 per cent shy of the 75 per cent shareholder approval it needs.
A Chartered spokesman said the company is now working on clearing the necessary regulatory approvals for the deal, and hopes to send details of the offer including Deutsche's recommendation to shareholders by mid-October. If all goes well, the offer will be put to a vote by November.
Atic, which is owned by the Abu Dhabi government, intends to delist the 22-year-old home-grown chip-maker from the Singapore Exchange as well as the US Nasdaq stock exchange where its shares are also traded. It will combine Chartered with its other chip-making unit, GlobalFoundries, to create the world's second largest chip-maker by capacity after Taiwan's Taiwan Semiconductor Manufacturing.
Meanwhile, Temasek unit Singapore Technologies Telemedia's bid for Eircom has been given the nod from the Irish telecoms company's majority shareholder.
Sydney-based eircom Holdings (ERC) announced on Monday that it was in favour of ST Telemedia's bid to buy over its 57 per cent stake in the former state-owned telecommunications player 'in the absence of a superior proposal'.
ERC will appoint an 'independent expert' to give its take on the deal ahead of ERC's December AGM where shareholders will vote on the A$230 million (about $280 million) deal.
The Straits Times understands that the expert's report is expected to be out by November.
ST Telemedia has already secured the support of Eircom's employee share ownership trust, the telco's second biggest shareholder which holds 35 per cent of the company's shares.
Sep 14, 2009
Chartered, Eircom get okay
Temasek Holdings is key player in both deals
By Chua Hian Hou
Chartered's independent directors have accepted Deutsche's recommendation, and urged shareholders to 'vote in favour of the offer', the company said in a statement on Monday. -- PHOTO: BT
A FINANCIAL advisory firm appointed to advise minority shareholders on the proposed acquisition of mainboard-listed chip-maker Chartered Semiconductor Manufacturing has approved the $5.6 billion deal.
Deutsche Bank said on Monday that Advanced Technology Investment Company's (Atic) $2.68 per share offer for Chartered's shares was 'fair and reasonable from a financial point of view'.
Chartered's independent directors have accepted Deutsche's recommendation, and urged shareholders to 'vote in favour of the offer', the company said in a statement on Monday.
Deutsche was appointed by Chartered's independent directors to advise minority shareholders on the merits of the Middle East sovereign wealth fund's $5.6 billion offer for the world's third-largest chipmaker.
Chartered's main shareholder, Temasek Holdings, has signed an 'irrevocable undertaking' to support the deal announced last week. With Temasek's 62 per cent stake in the bag, Atic is just 13 per cent shy of the 75 per cent shareholder approval it needs.
A Chartered spokesman said the company is now working on clearing the necessary regulatory approvals for the deal, and hopes to send details of the offer including Deutsche's recommendation to shareholders by mid-October. If all goes well, the offer will be put to a vote by November.
Atic, which is owned by the Abu Dhabi government, intends to delist the 22-year-old home-grown chip-maker from the Singapore Exchange as well as the US Nasdaq stock exchange where its shares are also traded. It will combine Chartered with its other chip-making unit, GlobalFoundries, to create the world's second largest chip-maker by capacity after Taiwan's Taiwan Semiconductor Manufacturing.
Meanwhile, Temasek unit Singapore Technologies Telemedia's bid for Eircom has been given the nod from the Irish telecoms company's majority shareholder.
Sydney-based eircom Holdings (ERC) announced on Monday that it was in favour of ST Telemedia's bid to buy over its 57 per cent stake in the former state-owned telecommunications player 'in the absence of a superior proposal'.
ERC will appoint an 'independent expert' to give its take on the deal ahead of ERC's December AGM where shareholders will vote on the A$230 million (about $280 million) deal.
The Straits Times understands that the expert's report is expected to be out by November.
ST Telemedia has already secured the support of Eircom's employee share ownership trust, the telco's second biggest shareholder which holds 35 per cent of the company's shares.
