STATS ChipPAC Likely to remain listed
Source : UOBKayhian report
There have been various conflicting announcements from STATS ChipPAC. The latest information is as summarised below:
Marathon Asset Management owns a 5.02% stake in STATS ChipPAC and is
a substantial shareholder. It also has dispositive but non-voting authority over another 1.84% stake.
OZ Management previously owned a 5.78% stake in STATS ChipPAC.
However, OZ Management has reduced its stake to 1.87% on 23 Apr 07. OZ Management is not a substantial shareholder in STATS ChipPAC. As at 5:30pm Singapore Time on 15 May 07, Temasek Holdings’ wholly owned subsidiary Singapore Technologies Semiconductors (STS) owns or has agreed to acquire 78.6% of the issued share capital of STATS ChipPAC. In aggregate STS and Marathon owns 83.6% of STATS ChipPAC. STATS ChipPAC states that “it has no reason to believe that less than 10% of issued ordinary shares are in the hands of publicâ€, meaning that it has not breach the free float requirement for listing on SGX.
STATS ChipPAC: The offer for STATS ChipPAC closes at 5:30pm Singapore
Time today, 18 May 07. Investors should sell in the market to lock in current prices. Poor liquidity for the stock could affect its weightage on the MSCI index.
Alternatively, investors can elect to accept the offer, which limits downside at the offer price of S$1.75.
United Test & Assembly Center: UTAC is a potential replacement for STATS ChipPAC in the MSCI index due to similar business and large free float (more than 80%). UTAC is a potential takeover target due to fragmented shareholding structure and attractive valuations. There could be possible offers from Temasek or private equity investors although we would link the huge increase in share price yesterday to the announcement
