Cornucopia Investment Partners has submitted an offer to acquire Magnachip Semiconductor Corp, with its offer surpassing that of Wise Road Capital.
Cornucopia set to acquire Magnachip
South Korea-based display and power chip maker Magnachip announced earlier today that Cornucopia Investment Partners had submitted an offer that values the company at $1.66 billion. Cornucopia offered $35 per share in cash, surpassing Magnachip’s current valuation, which stands at $28.20 per share.
According to Magnachip, the offer on the table from Cornucopia is higher than the $1.4 billion go-private deal it entered with private equity firm Wise Road Capital three months ago. At the moment, the Magnachip’s board is set to review and consider the proposal sent by Cornucopia. It is also highly likely that Magnachip could accept the offer as the price represents a premium of about 52% to the stock’s last close.
Due to this latest offer, Magnachip has postponed the special meeting of stockholders scheduled for 8:00 p.m. Eastern time from 15 June to 17 June 2021. Despite Cornucopia’s bid, the Magnachip’s board retains its recommendation to accept the merger agreement with Wise Road Capital.
Magnachip is popular for manufacturing analog and mixed-signal semiconductor platform solutions. The solutions are used in consumer electrics, while its chips are also used in flat-panel displays and smartphones.
Magnachip’s stock price soars
Following this latest development, Magnachip’s stock price has soared during today’s trading session. The Magnachip stock price is up by 13% over the past few hours and is currently trading just above $26.
Cornucopia assists management teams in raising funds to finance a wide range of transactions, including buyouts, buy-ins and development capital. For the transaction with Magnachip, the group of investors involved includes Yango financial holdings, Sino-Rock Investment Management Company Limited, Mr. Tim Crown, and Lombarda China Fund.