Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Tsinghua Holdings Offers $1.39 Billion for Spreadtrum

By  +Follow June 21, 2013 3:36PM
Tickers Mentioned:

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.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for SPRD
18 Nov 15 12:22:46
Get your say in on $SPRD at SpeculatingStocks, the discovery engine. https://t.co/8S4XVFH8tb #stocks
By  +Follow June 21, 2013 3:36PM



blog comments powered by Disqus

 Today's Must Reads

What Crowdfunding Leaders Are Saying About the SEC’s Approval of Title III

How the Drug Price Scrutiny is Affecting Pharma Stocks

8 More Tips for Choosing the Right Crowdfunding Platform

Will the Post-Smartphone Era Bring Wearable Drones?

3 Cloud Stocks That Pay Dividends


Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register