Spreadtrum receives buyout offer worth about $1.3B
Spreadtrum Communications receives buyout offer worth about $1.3B from Tsinghua Holdings
Smartphone chip maker Spreadtrum Communications is considering a preliminary acquisition offer valued at about $1.31 billion from Tsinghua Holdings Co. Ltd.
The Chinese company says Tsinghua outlined in a letter dated Thursday an offer that amounts to $28.50 per American depositary share. That represents a premium of 20 percent over Wednesday's closing price of $23.73 for the U.S.-traded shares.
Spreadtrum Communications Inc. says its board is reviewing the proposal and has not made any decisions.
Tsinghua Holdings is a state-owned corporation funded by China's Tsinghua University.
Spreadtrum shares are up nearly 18 percent, or $3.99, to $26.28 in Friday morning premarket trading.
