Sunedison Semiconductor Ltd (NASDAQ:SEMI) stock was up on Thursday after the announcement of a deal with semiconductor company GlobalWafers.
SunEdison Semiconductor has entered into a definitive agreement with GlobalWafers that will have it being acquired for $12 per share. This is a roughly 45% premium from the stock’s losing price on Wednesday. The total value of the deal is $683 million, including SEMI’s debt.
“The price is more than acceptable,” Doris Hsu, Chairperson and CEO of GlobalWafers, told Bloomberg in an interview. He said the company could become one of the largest suppliers for wafer makers.
The deal between Sunedison Semiconductor and GlobalWafers has already been unanimously approved by both companies’ Board of Directors. GlobalWafers will be financing the deal to acquire all outstanding shares of SEMI stock with cash on hand. It is also receiving financing from Bank of Taiwan, Hua Nan Commercial Bank, Mega International Bank, Taipei Fubon Bank, and Taishin International Bank for the deal.
GlobalWafers is expecting the Sunedison Semiconductor deal to help it improve in several areas. This includes expansion of its production capabilities, a global customer base and an increase in its financial scale. It’s also expecting minimal overlap in customers, products and production.
SunEdison Semiconductor is receiving financial advice from Barclays and legal advice from Bryan Cave LLP and Rajah & Tann Singapore LLP. GlobalWafers financial advisor for the deal is Nomura Securities. The company’s legal advisor is White & Case LLP.
SunEdison Semiconductor and GlobalWafers need regulatory and shareholder approval before the deal can be completed.
SEMI stock was up 38% as of Thursday morning.