BEIJING, Dec 29 (Reuters) - China's top foundry SMIC said on Monday that it plans to acquire the remaining 49% stake in unit SMNC for 40.6 billion yuan ($5.79 billion), giving it full control of the unit.
The deal will be executed through issuing 547.2 million A-shares to five SMNC shareholders, including China's National Integrated Circuit Industry Investment Fund, SMIC said in a filing to the Shanghai Stock Exchange.
SMNC mainly focuses on 12-inch integrated circuit wafer manufacturing for different process technologies, SMIC said, adding that the deal will help improve the company's asset quality and support its long-term development.
In a separate filing, SMIC said exiting shareholders and new investors of another subsidiary, SMSC, will boost the unit's registered capital to $10.1 billion, from $6.5 billion previously.
SMIC posted a 9.7% third-quarter revenue rise from a year earlier to $2.38 billion thanks to robust local demand, with profit up 28.9% to $191.75 million. Both beat analysts' expectations, according to LSEG data.
($1 = 7.0065 Chinese yuan renminbi)
Reporting by Ethan Wang and Ryan Woo; Editing by Alison Williams and Tomasz Janowski
Source: Reuters