RDA agrees to sell itself to Tsinghua for $910 million
Nov 11 (Reuters) - Chipmaker RDA Microelectronics Inc said it will sell itself to China's state-owned Tsinghua Unigroup Ltd for about $910 million.
The $18.50 per share deal represents a premium of 5.5 percent to RDA's Friday close of $17.53 on the Nasdaq.
Tsinghua Unigroup Ltd, which is funded by the Tsinghua University, on Friday offered to buy RDA for $18 per share, topping a $15.50 per share bid by Shanghai Pudong Science and Technology Investment Co Ltd.
RDA Microelectronics, which makes radio-frequency chips for mobile and broadcast devices, counts Huawei Technologies , ZTE Corp and Lenovo Group Ltd as customers.
"RDA will complement our existing portfolio in consumer products, protection and support and will benefit from our vast IP library and unique access to important capital markets in China," Tsinghua's Chairman and President Zhao Weiguo said in a statement.
The deal is expected to close in the first half of 2014.
Kilometre Capital acted as a strategic consultant to RDA, while Wilson Sonsini Goodrich & Rosati, P.C. and Skadden, Arps, Slate, Meagher & Flom LLP are legal advisers to RDA. Morrison & Foerster LLP is serving as legal adviser to Tsinghua Unigroup.