May 23, 2016 / 8:20 AM / 3 years ago

China's Fujian Grand Chip to buy Aixtron for 670 million euros

FRANKFURT (Reuters) - China’s Fujian Grand Chip Investment Fund LP (FGC) is to offer 6 euros per share to buy Aixtron (AIXGn.DE), valuing the German semiconductor equipment maker at around 670 million euros ($752 million) including net cash, the two companies said on Monday.

News of the offer, which represents a 51 percent premium over Aixtron’s three-month volume-weighted average share price, pushed up the German company’s stock by 20 percent in pre-market trade at brokerage Lang & Schwarz.

“With FGC we have found a partner that will provide local market insights to support our business objectives in Asia,” Aixtron supervisory board Chairman Kim Schindelhauer said in a statement, adding the board fully supported the deal.

Aixtron is to remain based in Herzogenrath, Germany, and will maintain its three technology hubs at its German headquarters, in Britain’s Cambridge and Sunnyvale in the United States, Aixtron said.

Its Chief Executive Martin Goetzeler and Chief Operating Officer Bernd Schulte are to remain in office after the takeover.

FGC is to provide around 1.7 billion yuan ($260 million), or around 231 million euros, of equity financing, while the rest of the funds for the takeover are to come from debt facilities.

Reporting by Maria Sheahan; Editing by Muralikumar Anantharaman and Georgina Prodhan

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