STATS ChipPAC takeover talks extended a second time, to Dec 31

Semiconductor chip packaging and testing firm STATS ChipPAC and Chinese firm Jiangsu Changjiang Electronics Technology (JCET) have extended talks on a proposed takeover for a second time. -- PHOTO: ST FILE
Semiconductor chip packaging and testing firm STATS ChipPAC and Chinese firm Jiangsu Changjiang Electronics Technology (JCET) have extended talks on a proposed takeover for a second time. -- PHOTO: ST FILE

SINGAPORE - STATS ChipPAC and Chinese firm Jiangsu Changjiang Electronics Technology (JCET) have extended talks on a proposed takeover for a second time.

STATS ChipPAC first said in November that JCET had launched a US$780 million takeover bid (S$1 billion).

Negotiations over the proposed takeover, which were set to end by Nov 30, were extended to Dec 20.

STATS ChipPAC said on Saturday evening that they have been extended again, this time to Dec 31.

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

STATS ChipPAC, 84-per cent owned by Temasek Holdings, is the world's fourth-largest provider of semiconductor testing and assembly services by sales.

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 to maintain their effective ownership interests before the completion of the proposed takeover, the firm had said in November.

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