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Finland's Okmetic receives takeover offer from China's National Silicon
April 1, 2016 / 10:00 AM / 2 years ago

Finland's Okmetic receives takeover offer from China's National Silicon

HELSINKI/NEW YORK (Reuters) - Finland’s Okmetic OKM1V.HE, said on Friday that it had received a takeover offer from China’s National Silicon Industry Group (NSIG) for the maker of silicon wafers used in semiconductors and analog circuits.

The takeover offer is the latest example of corporate China’s ambitions to snap up overseas semiconductor firms to build up its domestic chip industry.

Okmetic said NSIG had offered 9.20 euros ($10.49) and a dividend of 0.65 euros per Okmetic share, which represents a premium of close to 30 percent to its closing price on Thursday.

Chinese factories use over 60 percent of the world’s chips annually, and in 2013 imported more chips by value than crude oil. To promote domestic development, China’s government has tasked chip firms with raising revenue by more than 20 percent annually and building “a group of world-class companies” by 2030.

Shanghai-based NSIG was founded last year to invest in semiconductor materials and equipment through investments in China and abroad, according to the statement.

The board of Okmetic unanimously recommended shareholders accept the offer. U.S. boutique investment bank Moelis & Co (MC.N) is advising China’s National Silicon while Swiss bank UBS Group AG (UBSG.S) is advising Okmetic.

Okmetic shares were up 24 percent to 9.41 euros.

($1 = 0.8773 euros)

Reporting by Tuomas Forsell and Liana B. Baker in New York; Editing by Jason Neely and Meredith Mazzilli

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