Abu Dhabi's ATIC to acquire Singapore's Chartered Semi

Singapore-based chip maker Chartered Semiconductor Manufacturing said on Sunday it has struck a deal to sell itself to Advanced Technology Investment Company LLC (ATIC), a technology investment company wholly owned by the Emirate of Abu Dhabi, for approximately S$2.5 billion ($1.8 billion) cash or S$2.68 per share.

The price represents a premium of 14.2 per cent to the Singapore stock's 30 trading-day volume weighted-average price and a consideration of about $18.641 for each American depositary share

The deal is expected to close during the fourth quarter of this year, subject to regulatory and shareholder approval.

In May, Chartered Semi denied media reports that it had received a bid from the ATIC.

Singapore's state-owned fund Temasek Holdings, which currently owns approximately 62 per cent of the semiconductor foundry, "fully supports the acquisition and has signed an irrevocable undertaking to vote in support of the transaction," Chartered Semi said.

Including debt and convertible redeemable preference shares, the deal values Chartered Semi at approximately S$5.6 billion, the company said.