Chartered Semiconductor's merger receives favorable fairness opinion

By Lisa Kerner

Charlotte, N.C., Sept. 14 - Deutsche Bank, AG offered a fairness opinion to the board of directors of Chartered Semiconductor Manufacturing Ltd. regarding the company's proposed acquisition by ATIC International Investment Co. LLC.

The scheme of arrangement was deemed by Deutsche Bank to be "fair and reasonable from a financial point of view," according to a Chartered news release.

Chartered said its independent directors recommend that the company's shareholders support the transaction.

As previously reported, Chartered agreed to be acquired by ATIC for S$2.68 per share in a scheme of arrangement under Singapore law.

Each of Chartered's American Depositary Shares will be exchanged for an estimated $18.641. The actual amount received per ADS will depend on the applicable prevailing exchange rate, less fees and taxes.

The transaction, valued at $3.9 billion including debt, is expected to close in the fourth quarter of 2009, Chartered said.

ATIC, a technology investment company owned by the government of Abu Dhabi, created GlobalFoundries Inc., a Sunnyvale, Calif., semiconductor manufacturer, in March in a joint venture with Advanced Micro Devices Inc.

GlobalFoundries chief executive officer Doug Grose will be the CEO of the combined company. Chartered CEO Chia Song Hwee will be the chief operating officer.

Chartered is a Singapore-based company that provides wafer fabrication services and technologies to semiconductor suppliers and systems companies primarily in North America, Europe and Asia.

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