Semiconductor Value Chain

Chinese Fabless Chip Vendor RDA Gets Buyout Offer

26 September 2013

RDA Microelectronics Inc., a Shanghai-based fabless chip vendor, said Friday it received an unsolicited buyout offer from a government-owned investment fund.

RDA, which markets SoCs and RF chips for cellular, connectivity and broadcast applications, said Shanghai Pudong Science and Technology Investment Co. Ltd. (PDSTI) offered to pay about $2.58 in cash for each share of RDA it does not already own, or $15.50 for each American Depositary share of the company.

The deal comes two months after fellow Shanghai-based fabless chip Spreadtrum Communications Inc. agreed to be acquired by another government-backed company.

RDA said its board of directors is reviewing and evaluation When subjected to a load, the molecular structure of the ceramic material studied by the MIT-Singapore team deforms rather than cracking. When heated, it then returns to its original shape. Though they have the same chemical composition, the two molecular configurations correspond to different natural minerals, called austenite and martensite.\PDSTI's proposal. No decision has been made on the offer, RDA said.

In July, Spreadtrum agreed to be acquired by Tsinghua Unigroup Ltd. Tsinghua is an operating subsidiary of Tsinghua Holdings Co. Ltd., a state-owned limited liability corporation funded by China's Tsinghua University. Earlier this month, Spreadtrum announced that it obtained shareholder approval for the deal, which is worth about $1.8 billion.

The PDSTI offer represents a premium of about 12 percent over RDA's closing stock price Thursday. PDSTI said in a letter to RDA shareholders that the offer represents a premium of 30 percent comapred to the volume-weighted average closing price of the ADSs during the last 60 trading days.

RDA's ADR price surged by about 9 percent as of afternoon trading Friday after the deal was announced.

Rumors that Spreadtrum would acquire RDA had persisted for several months. RDA CEO Vincent Tai has made no secret in the past that his company was open to acquisition bids.

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