White knight for Chinese chip maker Tsinghua Unigroup completes deal payment after missing earlier deadline
- The JAC consortium was picked as the winner of an auction for China’s debt-ridden semiconductor giant, whose rescue was viewed as a national security issue
- The investor group had initially missed a March 31 deadline to transfer the remaining 14.6 billion yuan of the agreed price tag for the chip business
The winning bidder for beleaguered Chinese chip maker Tsinghua Unigroup has finally completed a 60 billion yuan (US$9.4 billion) takeover payment after missing an earlier deadline, people familiar with the matter said.
Unigroup’s administrators sent a notice to creditors late Friday that the JAC Capital-led consortium made full payment of the promised funds, the people said, asking not to be identified because the information is private.
The investor group had initially missed a March 31 deadline to transfer the remaining 14.6 billion yuan of the agreed price tag for the chip business, Bloomberg News has reported.
Semiconductor firm Tsinghua Unigroup gets green light for debt restructuring
The JAC consortium was picked as the winner of an auction for China’s debt-ridden semiconductor giant, whose rescue was viewed as a national security issue.
Representatives for JAC and Unigroup could not immediately be reached for comment outside regular Chinese business hours.
Beijing-based Unigroup is affiliated with the prestigious Tsinghua University, President Xi Jinping’s alma mater, and remains a linchpin in a race for technological supremacy.
JAC, a state-backed semiconductor investment fund, defeated a rival consortium led by Chinese e-commerce leader Alibaba Group Holding (owner of the Post). JAC and affiliate Wise Road Capital had offered 60 billion yuan to pay off debts to creditors.
The reorganisation plan was approved by a court in January, according to an exchange filing.
Separately, iPhone maker Apple is testing sample NAND flash memory chips made by Unigroup’s prized Yangtze Memory Technologies unit and is in discussions about a tie-up, Bloomberg News reported Thursday.
