China's Fujian Grand Chip offers $751m for Aixtron
Fujian Grand Chip Investment Fund (FGC), an investment vehicle controlled by Chinese entrepreneur Zhendong Liu, has offered to buy German semiconductor equipment maker Aixtron for EUR670 million ($751 million).
Under the offer, made through FGC's German branch Grand Chip Investment, the fund will offer EUR6 per share for the 112 million outstanding shares in Aixtron. The offer price represents a premium to the closing price of EUR5.56 on May 23. FGC's bid is subject to regulatory approval and shareholder approval.
Following the takeover, Aixtron will remain based in Germany, according to a release. FGC wants to help the company expand its global reach by adding new technology hubs to supplement the ones in Germany, the UK and the US. CEO Martin Goetzler and COO Bernd Schulte will retain their positions.
Aixtron manufactures components used in LED lighting. It has been under pressure from investors in recent months after a substantial cutback to an order from one of its largest clients. Several shareholders have filed lawsuits against the company, accusing it of presenting misleading financial information.
Liu owns a 51% stake in FGC, with the remaining shares held by Fujian-based Xiaman Bohao Investment. Backers of the fund include Sino IC, a state-owned investment vehicle with assets of around $20 billion aimed at acquisitions in the semiconductor industry, according to media reports.
In recent years Chinese investors have made numerous attempts to acquire Western semiconductor businesses. So far 2016 alone has seen two successful offers, with Beijing E-Town Capital completing its takeover of NASDAQ-listed semiconductor processing equipment maker Mattson Technology and a consortium including Hua Capital Management, CITIC Capital and Goldstone acquiring US-based chipmaker OmniVision Technologies.
In addition, Hua Capital and China Resources Microelectronics offered $2.6 billion earlier this year for Fairchild Semiconductor International. However, the company turned down that bid in favor of an offer from its competitor ON Semiconductor, citing concerns over possible rejection by US regulators.
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