Hua Hong Semiconductor Sets Terms for Major Acquisition and RMB Share Issue

An update from Hua Hong Semiconductor Ltd. ( (HK:1347) ) is now available.

Hua Hong Semiconductor has set the final consideration for its previously announced acquisition of a target company at RMB8.48 billion, to be paid through the issuance of 190,768,392 new consideration shares plus minor cash for fractional shares, after agreeing the valuation with the vendors via a supplemental agreement. The company also entered into a compensation arrangement with its controlling shareholder Huahong Group under which any asset impairment in the acquired business over the next three financial years will trigger compensation to Hua Hong Semiconductor, partly via repurchase of consideration shares at a nominal price and partly in cash, and it plans to raise up to RMB7.56 billion through a non‑public issuance of RMB shares—amounting to no more than 30% of enlarged share capital—to fund the deal, subject to regulatory and independent shareholder approvals at an upcoming extraordinary general meeting, where investors will also vote on related mandates, a whitewash waiver and treatment of the issuance as a special deal under takeover rules.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$68.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

More about Hua Hong Semiconductor Ltd.

Hua Hong Semiconductor Limited is a Hong Kong–incorporated semiconductor manufacturer whose business centers on foundry services, producing integrated circuits and related semiconductor products for global electronics and technology markets.

Average Trading Volume: 42,992,026

Technical Sentiment Signal: Buy

Current Market Cap: HK$145.1B

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