Company Report: SMIC, China Merchants Shekou

Semiconductor maker gives up shares issue rights; industrial zone operator to raise acquisition funds

by Nadeem Xu
Company Report: SMIC
Chips with everything: Semiconductor maker SMIC gives up shares issue rights. 

(ATF) Semiconductor Manufacturing International Corporation (SMIC), a Hong Kong-listed chip foundry firm, said its shareholders Datang Telecom Technology Industry Holding and International Integrated Circuit Industry Investment Fund had indicated they would give up the pre-emptive right to issue yuan shares.

It was reported that the affiliated companies of Datang Telecom and the National Integrated Circuit Fund were considering participating in the proposal of yuan share issuance as strategic investors.

SMIC’s investment in its three major projects will cost about 20 billion yuan, of which about 8 billion yuan will be invested in the ongoing 12-inch chip SN1 project in SMIC South.

China Merchants Shekou Industrial Zone Holdings, a Shenzhen-listed company, said it plans to issue shares and convertible bonds and pay cash to acquire 24% of the stake in Shenzhen Nanyou Holdings, and to raise supplementary funds from Ping An Capital Management’s non-public offering of shares.

Trading of the company’s shares will be suspended from June 1. After the transaction is completed, Nanyou Holdings will become a wholly-owned subsidiary of the company. Nanyou indirectly holds the equity of Qianhai Free Trade Zone, which has high-quality land resources.