Finland’s Okmetic, a maker of silicon wafers used in semiconductors and analog circuits, announced on 1 April that it has received a takeover offer from China’s National Silicon Industry Group (NSIG).
The Board of Directors of Okmetic unanimously decided to recommend the shareholders and holders of option rights to accept the Tender Offer. NSIG will make a voluntary public tender offer to purchase all of the issued and outstanding shares and option rights in Okmetic that are not owned by Okmetic or any of its subsidiaries.
The offer price of EUR 9.20 together with the proposed dividend of EUR 0.65 per share, EUR 9.85 in the aggregate, represents a premium of approximately 29.6 per cent compared to the closing price of the Okmetic shares on Nasdaq Helsinki Ltd.
NSIG is an industry holding company in China focusing on investment and development of semiconductor equipment and materials. NSIG is owned by five shareholders: National Integrated Circuit Industry Investment Fund Co., Ltd., Shanghai Guosheng (Group) Limited, Shanghai SummitView Integrated Circuit Equity Investment Partnership, Shanghai SIMIC Co., Ltd. and Shanghai Jiading Industrial Development Zone (Group) Co., Ltd.
NSIG’s target is to establish a major industrial player in the global semiconductor sector (especially silicon and its ecosystems) through both the PRC domestic investments and outbound mergers and acquisitions.
Chinese factories use over 60 per cent of the world’s chips annually, and in 2013 imported more chips by value than crude oil. To promote domestic development, China’s government has tasked chip firms with raising revenue by more than 20 per cent annually and building “a group of world-class companies” by 2030.
Established in 1985, Okmetic is one of the leading specialty silicon wafers producers and suppliers globally with a production plant in Vantaa, Finland, and contract manufacturers in China and Japan.
Okmetic specializes in product development, production and trade of materials in the electronics industry both in Finland and abroad as well as consulting, service and design activities relating to the above operations and materials used in the field of business. Its tailored, high value-added silicon wafers are used in the manufacture of sensors as well as discrete semiconductors and analog circuits. Okmetic’s strategic objective is profitable growth driven by a product portfolio designed to meet customers’ current and future technology needs.
It is NSIG’s intention to strongly support Okmetic’s growth and the future of the Vantaa plant. NSIG also aims to retain the existing management team and employees of Okmetic on their current employment terms in order to ensure that the Finnish producer will continue on its current development path also post-Tender Offer.
NSIG believes that the acquisition will further strengthen Okmetic’s worldwide distribution platform, especially in the rapidly growing Chinese semiconductor market. Okmetic’s unique technological capabilities combined with NSIG’s local market knowledge and access to funding will significantly accelerate Okmetic’s development. In addition, NSIG believes that the proven expertise and experience of the Finnish company’s management and its excellent financial performance in a tough industry will continue to be major growth drivers and success factors of the company.
“We are delighted about the opportunity to invest in Okmetic, a Finnish specialty silicon wafer manufacturer”, commented Dr. Xi Wang, the Chairman of the Board of Directors of NSIG.
“Okmetic has undergone a successful transformation over the last few years and has been able to deliver outstanding total shareholder returns during times of high price pressure in the industry. Having carefully assessed the terms and conditions of the Tender Offer, the Board of Directors has concluded that entering into the Combination Agreement is in the interest of the shareholders and holders of option rights of Okmetic. Our assessment is that the Tender Offer is favourable to our shareholders and holders of option rights compared to continuing Okmetic as a standalone company or, alternatively, compared to other strategic alternatives that may be available,” says Jan Lång, Chairman of the Board of Okmetic.
Lång furthermore said they were confident that NSIG’s position in the semiconductor industry would provide Okmetic with strengthened resources for growth and, thus, support the Finnish firm’s role as one of the key players within the silicon wafer industry.
“Okmetic has exceptional knowhow and high-class technical expertise, which will continue to carry its future development.”