UPDATE 1-Chartered Semi says open to strategic investors
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By Jennifer Tan
SINGAPORE, May 14 (Reuters) - Singapore contract chipmaker Chartered Semiconductor Manufacturing Ltd CSMF.SI said on Wednesday it was open to strategic investors and remained on the lookout to acquire new factory capacity worldwide.
"Chartered is open to considering strategic investors if and when such opportunities arise. We need to evaluate such opportunities on a case-by-case basis and ensure that it is in the interest of all shareholders," a Chartered spokeswoman told Reuters in an emailed reply.
On Monday, Chartered shares surged 13.5 percent to a four-month high of S$0.97 on speculation of a possible bid for the firm, dealers said.
Singapore state investor Temasek Holdings [TEM.UL] controls around 59 percent of Chartered, according to data from Thomson Reuters. The company is valued at around $1.7 billion.
According to investment bankers, Chartered had held talks with Chinese rival Semiconductor Manufacturing International Corp (SMIC) (0981.HK) late last year on a possible strategic investment by the latter. Citigroup was said to be advising Chartered on the deal, but the talks fell through.
The Chartered spokeswoman declined to commment on the talks, but added it was common for investment bankers to approach management with "various proposals of similar nature".
Meanwhile, Chartered would continue to explore opportunities to acquire new factory capacity worldwide, she added.
In March, Chartered paid $240 million to acquire Hitachi Semiconductor Singapore Pte Ltd, an eight-inch wafer plant, which uses older chip-making technologies.
Last month, Chartered Chief Executive Chia Song Hwee said the company was seeking more eight-inch wafer plants, as demand remained strong for the older chip-making technology.
Last month, the company reported a 62 percent drop in first-quarter net profit to $2.4 million as demand for video game consoles, personal computers and communication equipment weakened.
Chartered ranks alongside SMIC in the market for custom-built microchips, which is dominated by larger rivals Taiwan Semiconductor Manufacturing Co. Ltd (2330.TW) and United Microelectronics Corp (2303.TW). (Editing by Jan Dahinten)
