- Wise Road said that it intends to work together with Magnachip’s management team to pursue the next step in the company’s growth strategy
- The transaction is expected to close during the second half of 2021, subject to customary closing conditions, including the receipt of shareholder and regulatory approvals
Magnachip Semiconductor Corporation has announced that it has entered into a definitive agreement with South Dearborn Limited, a company incorporated in the Cayman Islands, and Michigan Merger Sub, Inc., a Delaware corporation, which are investment vehicles established by Wise Road Capital LTD and certain of its limited partners . The all-cash transaction has an equity value of approximately $1.4 billion. The transaction is fully backed by equity commitments and not contingent on any financing conditions.
It said, “Under the terms of the agreement, Magnachip shareholders will receive $29.00 in cash for each share of Magnachip’s common stock they currently hold, representing a premium of approximately 75 per cent to Magnachip’s 3-month volume-weighted average share price and approximately a 54 per cent premium to the unaffected closing stock price on March 2, 2021, the last trading day before media reports of third-party interest in acquiring Magnachip.
Following the closing of the transaction, Magnachip’s management team and employees are expected to continue in their roles, and the company will remain based in Cheongju, Seoul and Gumi, South Korea.
Wise Road will help Magnachip’s growth internationally
Magnachip’s Chief Executive Officer, YJ Kim, said, “This transaction is in the best interests of all of our stakeholders, including shareholders, customers and employees. It will provide an excellent opportunity to accelerate our MX 3.0 growth strategy. Given their deep industry expertise, Wise Road Capital is an ideal partner for Magnachip, and we look forward to working with them as we chart the next phase for our company. We remain grateful to our customers for their trust and to our fellow employees for their unwavering commitment to delivering industry-leading products to customers worldwide.”
Wise Road said that it intends to work together with Magnachip’s management team to pursue the next step in the company’s growth strategy and transform the company into a true industry leader in the global display and power markets. Wise Road will help Magnachip’s growth internationally. The transaction is expected to close during the second half of 2021, subject to customary closing conditions, including the receipt of shareholder and regulatory approvals.
