Two Chinese firms among potential bidders for Singapore’s Stats ChipPac

PUBLISHED : Thursday, 28 August, 2014, 3:36pm
UPDATED : Thursday, 28 August, 2014, 3:36pm

Two Chinese firms are among companies that have approached Stats ChipPac about acquiring it, the Singapore provider of technology services said on Thursday.

Stats ChipPac, which has a market value of US$1.2 billion and is majority-owned by state investor Temasek Holdings, identified Jiangsu Changjiang Electronics Technology and Tianshui Huatian Technology as possible bidders.

The Singapore company, which provides semiconductor packaging design and assembly solutions, had said in May that it had been approached by some companies but had not identified them.

“The company wishes to confirm that these parties include [Changjiang Electronics] and Huatian. There is no assurance that any of these approaches will result in any definitive agreement or transaction,” it said in a statement on Thursday.

The Chinese companies each have a market capitalisation that is only slightly bigger than Stats ChipPac.

Stats ChipPac’s shares shot up 12 per cent on Wednesday and were flat on Thursday. The stock has doubled this year on the view that it is a takeover target for Taiwanese or mainland Chinese firms.

Moody’s Investors Service cut its ratings for the company this month, citing its debt load as well as slowing growth in the high-end communications segment and muted demand from the personal computer and consumer-end markets. It noted that revenues had been on a declining trend since 2011.

Stats ChipPac’s corporate family rating and senior unsecured debt rating was cut to Ba2 from Ba1.

Temasek madein early 2007 a bid of up to US$1.6 billion for the 64.4 per cent of Stats ChipPac it did not own, but it was unable to hit the 90 per cent mark that would have allowed a delisting. It currently owns 83.8 per cent of Stats ChipPac.