The takeover bid tops a previously announced rival offer of $1.4bn from Wise Road Capital
Cornucopia Investment Partners offers a takeover bid of $35 per share in cash to Magnachip Semiconductor. (Credit: aymane jdidi from Pixabay)
Magnachip Semiconductor has received a takeover bid of $35 per share in cash from Cornucopia Investment Partners on behalf of itself and a consortium of investors.
The unsolicited proposal values the South Korean semiconductor manufacturing company at $1.66bn.
The group of investors involved in the takeover bid include financial sponsors led by Tim Crown, Yango financial holdings, Sino-Rock Investment Management, and Lombarda China Fund.
In March 2021, Magnachip Semiconductor had signed a $1.4bn deal to be acquired by Wise Road Capital through the latter’s investment vehicles – South Dearborn and Michigan Merger Sub.
Wise Road Capital had agreed to pay $29 per share in cash to the semiconductor manufacturing company’s shareholders. Magnachip Semiconductor’s board of directors had unanimously approved the merger agreement and had recommended shareholders vote in favour of the deal.
Magnachip Semiconductor said that its board of directors will now review and consider the proposal from Cornucopia Investment Partners.
The company had reached an agreement with South Dearborn and Michigan Merger Sub which gives it the right to take part in discussions with Cornucopia Investment Partners regarding its proposal. This will be for the sole purpose of evaluating if the proposal constitutes or can reasonably be expected to result in a superior proposal.
Its board of directors is yet to make a determination on the takeover proposal from Cornucopia Investment Partners. The company’s board also did not change its recommendation that stockholders should vote in favour of the proposal to adopt the merger agreement and approve the merger.
Magnachip Semiconductor is engaged in designing and manufacturing analogue and mixed-signal semiconductor platform solutions for communications, consumer, the internet of things (IoT), industrial and automotive applications.