Microchip Technology closes tender off for ISSC Technologies' outstanding shares.
M2 EQUITYBITES-July 15, 2014-Microchip Technology closes tender off for ISSC Technologies' outstanding shares
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Microchip Technology Incorporated (NASDAQ:MCHP), a provider of micro-controller, mixed-signal, analogue and Flash-IP solutions, said today that it closed its tender offer for the outstanding shares of Taiwan based ISSC Technologies Corporation (ISSC), as of the expiry date on 14 July 2014.
Further, a total of 57,228,225 or about 83.46% of the outstanding shares of ISSC were tendered at the offer price of about USD4.74 per share as of the expiry date, exceeding the minimum tender condition of 27,300,429 shares and the purchase of these shares will be settled on or before 18 July 2014.
Accordingly, the company obtained a majority controlling interest in ISSC and will begin consolidating ISSC's financial statements with its own as per its percentage ownership. Also, it said that of the shares which have already been tendered some ISSC stockholders are parties to a tender agreement under which they have the right to tender certain shares owned by them upon the expiry of a statutory lock-up period. Thereafter, Microchip will acquire an additional 10.47% of the outstanding ISSC shares, after 27 November 2014.
Finally, Microchip will acquire the remaining outstanding shares of ISSC through a follow-on merger as per the terms and conditions of a merger agreement with ISSC, which is expected to be completed by late December 2014 and thereafter, ISSC will cease to be a publicly reported company on the GreTai Securities market in Taiwan and its stock will be de-listed.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jul 15, 2014|
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