Stats ChipPAC buyout talks extended for three weeks

SINGAPORE - Talks over a proposed buyout of Stats ChipPac by a Chinese company have been extended to Dec 20.

Stats ChipPAC, the world's fourth-largest provider of semiconductor testing and assembly services by sales, said in a statement on Sunday night that the talks could be extended even further, as agreed by the parties involved in the negotiations.

Stats ChipPAC had said in early November that Jiangsu Changjiang Electronics Technology (JCET) was launching a US$780 million (S$1 billion) takeover bid.

The proposed buyout does not include Stats ChipPAC's subsidiaries in Taiwan, the 52 per cent-owned Stats ChipPAC Taiwan Semiconductor Corporation and 100 per cent-owned Stats ChipPAC Taiwan.

These units will be restructured to enable Stats ChipPAC's existing shareholders, which include Temasek Holdings, to maintain their effective ownership interests before the completion of the proposed takeover, the firm said.

JCET, listed on the Shanghai stock exchange, is the largest electronics packaging service provider in China.

There is no certainty that the JCET proposal will result in any definitive agreement or transaction, Stats ChipPAC said in its statement on Sunday.