SFA Semicon officially announces tender offer plan

SFA Semicon [SSP 2.14, up 1.4%; 5% avgVol] [link] officially notified the SEC of the intention of its parent company, SFA Semicon Co. Ltd. (SSK), to conduct a tender offer to acquire 204,875,000 of SFA’s common shares “in connection with the proposal for SSP to file a petition for voluntary delisting.” SSK plans to offer P2.22/share for the tender offer shares, and SSK will conduct the tender offer once SSP shareholders approve the voluntary delisting at SSP’s upcoming stockholders’ meeting on October 11. SSK will produce a Tender Offer Report after that vote.

MB bottom-line:  Nothing too unusual here. I know there are significant rumblings that this tender offer price is too low, so the rule that requires the approval of at least two-thirds of the minority shares has a chance to play a role in this process by making noise at the stockholders’ meeting in October. The best part of the disclosure, though, were the “errata” related to the tender offer notice that was published in the Philippine Daily Inquirer. SSP noted that the tender offer price was just listed as “2.22” (it was missing the Peso sign, which is important because SSK is a foreign company), and that (for some reason) the name and contact info of one of SSP’s back office employees was published beside the logo at the top of the notice. Whoopsie!

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