Image source: Aixtron.
What: Shares of German chipmaker Aixtron SE (NASDAQ: AIXG) surged on Monday following news that the company had received and accepted a buyout offer from a Chinese investment fund. At 11:30 a.m. EDT, the stock was up about 12.5%.
So what: Fujian Grand Chip Investment Fund, which is 51% owned by Chinese business man Zhendong Liu and 49% owned by Xiamen Bohao Investment Ltd., has agreed to pay 6 euros in cash for each ordinary share of Aixtron. This price is 50.7% higher than the three-month volume-weighted average share price prior to the announcement. The deal is valued at 670 million euros, or about $750 million.
The transaction still needs to be approved by regulators, and it requires a 60% acceptance rate from all of Aixtron's outstanding shares. According to a statement the company made to
Now what: Shares of Aixtron have plummeted since peaking in 2011. The ADR surpassed $40 per share at its peak, only to tumble below $4 per share earlier this year. After the deal was announced, the ADR traded for around $6.15 per share.
Aixtron is not the first case of a European company being bid on by a Chinese company. Last week, Chinese appliance maker Midea Group offered $5 billion for Kuka, a German robot maker. And in February, Swiss seed company Syngenta agreed to a $43 billion offer from China National Chemical Corp. The deal for Aixtron is the smallest of the three, but it's unlikely to mark the end of this Chinese acquisition spree.
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