Boston, MA 06/11/2014 (wallstreetpr) – Montage Technology Group Ltd (NASDAQ:MONT) will be acquired by Shanghai Pudong Science and Technology Investment Co., Ltd. for $22.6 per ordinary share.
Terms Of Agreement
The global provider of mixed- signal and analog semiconductor solutions for cloud computing markets and home entertainment announced that it has entered into a definitive agreement with PDSTI, which is a fully state owned limited liability company managed by the Pudong New Area government of Shanghai. PDSTI integrates proprietary investments and investment management services. As per the definitive merger deal, PDSTI will attain Montage’s outstanding ordinary shares for $22.60 per ordinary share. According to this, Montage’s equity will be valued at around $693 million. However, the deal is subjected to Montage’s shareholders’ agreement as well as other antitrust and regulatory approvals.
Montage’s financial advisor in the merger agreement is Stifel while its legal advisor is O’Melveny & Myers LLP. On the other hand, PDSTI has been receiving financial advice from China International Capital Corporation Limited and Barclays Bank PLC. And its legal advisor is Kirkland & Ellis.
Opportunities Growth
Montage’s Chief Executive Officer and Chairman, Dr. Howard Yang, said that the deal will provide Montage Technology Group Ltd (NASDAQ:MONT)’s shareholders significant cash value. He added that they will receive a premium on the company’s unaffected share price. He said that the move will provide Montage operational flexibility while allowing it to make strategic investments. This could lead to powerful innovation and development of cutting edge consumer solutions.
PDSTI’s Chairman, Dr. Xudong Zhu, sees this merger as part of Montage Technology Group Ltd (NASDAQ:MONT)’s strategy of helping growing companies within the semiconductor industry. The company has deep insight in the integrated circuit design industry and is known to have invested in many established IC design companies. He said that Montage demonstrates excellent history of pioneering and providing best- in- class technology solutions for customers in the global semiconductor marketplace.
