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Tsinghua Holdings Offers $1.39 Billion for Spreadtrum

By  +Follow June 21, 2013 3:36PM
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Tsinghua SchoolSpreadtrum Communications (SPRD), a China-based fabless semiconductor provider, said Friday morning that it has received a preliminary acquisition offer valued at $28.50 in cash per American Depositary Share from Tsinghua Unigroup Ltd., sending shares to a new one-year high. The offer represents a transaction value of about $1.39 billion, a 20 percent premium to Wednesday's closing price, the day before the offer was submitted. The proposed price is a 44 percent premium to Spreadtrum's 30-day volume-weighted trading price.

Tsinghua Unigroup is an operating subsidiary of Tsinghua Holdings Co. Ltd., a state-owned company funded by China's Tsinghua University. Tsinghua Holdings has agreed to provide equity funding up to $1.5 billion for the transaction if debt financing isn't available.

Spreadtrum said that its board is reviewing and evaluating the proposal and has not yet made any decisions or provided a response with respect to the proposal to Tsinghua.

In May, Spreadtrum reported first-quarter revenue of $189.0 million, up 17.3 percent from the year prior quarter. Adjusted profits for the quarter, which exclude stock-based compensation costs, totaled $26.5 million, or 50 cents per ADS, down from $29.3 million, or 57 cents per ADS, in the first quarter of 2012.

Earlier this month, the company surprised by upping its guidance for the current quarter, saying that it expects revenues between $270 million and $278 million, an increase of 42.9 percent to 47.1 percent over the first quarter. Previously, Spreadtrum had guided revenue in the range of $220 million to $228 million.

"We are increasing our revenue guidance due to the continuing strong demand throughout the quarter for low-cost smartphones," said Dr. Leo Li, chairman and chief executive of Spreadtrum, in a statement of the improved outlook.

Since hitting 2013-lows of $14.91 in February, shares of SPRD have climbed about 75 percent, including a 16-percent spike with the possible buyout news on Friday.

Results for SPRD
JD Dollar
20 Apr 14 14:07:47
$SPRD Spreadtrum Enters the Tablet Market http://t.co/gUbecaH6qk
Pike Gall
19 Apr 14 20:20:57
$SPRD Spreadtrum Launches N http://t.co/iN86eHAmHt
Jama Dahl
19 Apr 14 18:05:01
$SPRD Spreadtrum Launches N http://t.co/QorO3pu4hw
Small Cap Updates
19 Apr 14 12:06:55
$SPRD Spreadtrum Launches N http://t.co/CEyMtVM3qL
Brecken Kingston
19 Apr 14 09:55:19
$SPRD Spreadtrum Launches N http://t.co/tvZSVDaKya
Lekisha Longoria
19 Apr 14 08:56:07
$SPRD Spreadtrum Launches N http://t.co/lUhXEPdDcU
Fox Galvanes
18 Apr 14 17:34:33
$SPRD Spreadtrum Launches N http://t.co/CAs7PlmhFE
Mariano Maestasd
18 Apr 14 15:52:48
$SPRD Review: Lots of innovat http://t.co/GyPH7jfga3
Finance Wire
18 Apr 14 09:49:41
$SPRD Spreadtrum Launches N http://t.co/AYuoYDwO66
Thad Bannister
18 Apr 14 05:16:59
$SPRD Spreadtrum Launches N http://t.co/TsiQw9Vrso
Luther Black
17 Apr 14 14:42:25
$SPRD Spreadtrum Enters the Tablet Market http://t.co/QNTMxKnd48
Yahaira Landry
16 Apr 14 20:10:19
$SPRD Spreadtrum Enters the Tablet Market http://t.co/biXDP0t5ik
Gigi Rhoads
16 Apr 14 17:30:30
$SPRD Spreadtrum Launches N http://t.co/egVb53weh6
Mariano Keifer
16 Apr 14 13:21:06
$SPRD Spreadtrum Launches N http://t.co/iZEqR1KfBe
Market Research
16 Apr 14 12:49:14
$SPRD Spreadtrum Enters the Tablet Market http://t.co/SszmJyCRG7
Lathan Kobem
15 Apr 14 15:55:06
$SPRD Spreadtrum Enters the Tablet Market http://t.co/TIEXaVNSRW
Boaz Boulstridge
15 Apr 14 11:20:04
$SPRD Spreadtrum Enters the Tablet Market http://t.co/XXXrNKxTHU
Legend Boulstridge
14 Apr 14 17:44:10
$SPRD Spreadtrum Enters the Tablet Market http://t.co/6iz2v0R1NP
Constantine Greyson
14 Apr 14 15:26:42
$SPRD Spreadtrum Launches N http://t.co/nqTB5KpnH1
Risa Whittaker
14 Apr 14 13:23:24
$SPRD Spreadtrum Enters the Tablet Market http://t.co/rhWln71BwI
Zackery Jaxon
14 Apr 14 12:37:21
$SPRD Spreadtrum Launches N http://t.co/YUhSGOuBU3
Dmitri Magnuson
14 Apr 14 12:36:36
$SPRD Spreadtrum Launches N http://t.co/YeT0XMWjDU
Ignacio Johnson
13 Apr 14 18:41:35
$SPRD Spreadtrum Launches N http://t.co/idbOXAYPRC
Svelteei
13 Apr 14 13:33:07
$SPRD Spreadtrum Launches N http://t.co/dYBOx920EP
Sky Grady
12 Apr 14 18:51:05
$SPRD Spreadtrum Launches N http://t.co/fa2zHcufub
Calloway Domville
12 Apr 14 14:53:11
$SPRD Spreadtrum Launches N http://t.co/gUoJT1rbNL
Laird McQuillen
12 Apr 14 09:57:56
$SPRD Spreadtrum Enters the Tablet Market http://t.co/NzLrF3pU4q
				
				
By  +Follow June 21, 2013 3:36PM
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