Tsinghua University offers $1.3bn in a takeover bid of smartphone chipset manufacturer Spreadtrum.
Spreadtrum Communications, a smartphone chipset manufacturer backed by venture firm New Enterprise Associates (NEA), has received a $1.3bn non-binding buyout offer from Tsinghua University.
The offer of $28.50 per American depository share was made through Tsinghua Unigroup, a subsidiary of the institution’s state-owned investment unit Tsinghua Holdings, representing a premium of 28 per cent for Spreadtrum’s closing price on the Nasdaq last Thursday. Following the announcement, Spreadtrum’s share price jumped more than 16%.
San Diego-based Spreadtrum, which raised its revenue estimates for Q2 2013 to $270-$278m last week and counts smartphone manufacturers HTC and Samsung amongst its customers, is reported to be evaluating the deal by news provider Reuters.
Spreadtrum went public in 2007, raising $124.6m when it was floated on the Nasdaq.
NEA started backing Spectrum in 2002 with a $19.8m series B round. It also took part in another round in 2006 when it invested $20m alongside Fortune Venture Investment Group in a series D round. As of the end of 2012, NEA maintained a 10.4% stake in the company.
Tsinghua itself also previously had a stake in Spreadtrum, having participated in the firm’s series A and B rounds through Tsinghua Holdings-backed Tsinghua Science Park Venture Capital.
Commenting on the buyout proposition, Weiguo Zhao, Unigroup chief executive, said: “We believe that an acquisition by Tsinghua Unigroup, majority-owned by Tsinghua University, a central player in China’s technology and R&D sectors, would provide compelling strategic synergies and position the company for additional value creation in key wireless communications markets in China and elsewhere going forward.”