Product category:
Microprocessors, Microcontrollers and DSPs
News Release from: Freescale Semiconductor
Edited by the Electronicstalk Editorial
Team on 19 September 2006
Consortium to acquire Freescale
Freescale Semiconductor has entered into a definitive merger agreement to be acquired by a private equity consortium in a transaction with a total equity value of $17.6 billion.
Freescale Semiconductor has entered into a definitive merger agreement to be acquired by a private equity consortium in a transaction with a total equity value of $17.6 billion The consortium is led by The Blackstone Group, and includes The Carlyle Group, Permira Funds and Texas Pacific Group
This article was originally published on Electronicstalk on 20 Mar 2001 at 8.00am (UK)
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Under the terms of the merger agreement, the consortium will acquire all of the outstanding Class A and Class B shares of Freescale for $40 per share in cash, representing a premium of approximately 36% over Freescale's average closing share price during the 30 trading days ended 8th September 2006.
The company first acknowledged it was in discussions with third parties regarding a possible transaction on 11th September 2006.
The board of directors of Freescale has unanimously approved the merger agreement and resolved to recommend that Freescale's stockholders adopt the agreement.
There is no financing condition to the obligations of the private equity consortium to consummate the transaction, and equity and debt commitments for the full amount of the merger consideration have been received.
It is currently anticipated that substantially all of the company's outstanding notes will either be tendered for or repaid.
The merger is subject to customary conditions to closing, including the affirmative vote of Freescale stockholders and requisite antitrust approvals.
The merger agreement contains a provision under which Freescale may solicit alternative proposals from third parties during the next 50 calendar days.
In addition, Freescale may, at any time, subject to the terms of the merger agreement, respond to unsolicited proposals.
If the company accepts a superior proposal, a break-up fee would be payable by the company.
There can be no assurance of any alternative proposal.
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