SMIC, a Shanghai-based contract chipmaker, said on June 24 that it plans to acquire the remaining 49% of SMIC Northern Integrated Circuit Manufacturing (Beijing) Co. Ltd. by issuing shares, giving it full ownership of the mature-process wafer fab.

SMIC previously owned 51% of the unit. The sellers are the National Integrated Circuit Industry Investment Fund, the Integrated Circuit Investment Center, Yizhuang State Investment, Beijing Industrial Investment, and Zhongguancun Development.

After the deal, SMIC said the National Integrated Circuit Industry Investment Fund will hold 357.3 million A-shares, equal to 14.03% of the company’s total A-share capital and 4.17% of its total share capital.

Xinxin Hong Kong, which acts in concert with the fund, holds 224.99 million Hong Kong shares, equal to 2.63% of SMIC’s total share capital.

Together, their combined stake will be 6.80% of SMIC’s total share capital.

SMIC said the change in ownership will not trigger a tender offer or alter its status as having no controlling shareholder or actual controller.

SMIC has not disclosed the total consideration or the exact number of new shares, but the new A-shares are priced at 74.2 yuan (US$11) each.

The chip fund previously held 8.93% of SMIC after a 2021 selldown, which indicates that this transaction would increase its direct stake in the listed company.

🔗 Source: Jiemian

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