- The stock price of Magnachip Semiconductor Corp (NYSE: MX) increased by over 20% pre-market. This is why it happened.
The stock price of Magnachip Semiconductor Corp (NYSE: MX) increased by over 20% pre-market. Investors are responding positively to Magnachip Semiconductor Corporation confirming the receipt of an unsolicited proposal from Cornucopia Investment Partners on behalf of itself and a group of investors, including financial sponsors led by Tim Crown, Yango financial holdings, Sino-Rock Investment Management Company Limited, and Lombarda China Fund to acquire all of the outstanding shares of Magnachip common stock, par value $0.01 per share, for $35 per share in cash.
As previously announced, on March 25, 2021, Magnachip had entered into an Agreement and Plan of Merger with South Dearborn Limited, an exempted company incorporated in the Cayman Islands with limited liability formed by an affiliate of Wise Road Capital LTD, and Michigan Merger Sub, a wholly-owned subsidiary of South Dearborn, pursuant to which Merger Sub will be merged with and into Magnachip, with Magnachip continuing its corporate existence under the General Corporation Law of the State of Delaware as the surviving corporation in the Merger and becoming a wholly-owned subsidiary of South Dearborn.
Under and subject to the terms of the Merger Agreement, each share of Common Stock issued and outstanding immediately before the effective time of the Merger will be canceled and will cease to exist and will be automatically converted into the right to receive $29 in cash, without interest, subject to applicable withholding taxes.
Magnachip’s Board of Directors, in consultation with its legal and financial advisors, will carefully review and consider the proposal. Magnachip, South Dearborn, and Merger Sub have reached an agreement whereby, through June 16, 2021, Magnachip will have the right to participate in discussions with Cornucopia in connection with the proposal for the sole purpose of determining whether the proposal constitutes or could reasonably be expected to lead to a superior proposal.
Magnachip’s Board of Directors has not yet made such a determination. In light of the proposal, Magnachip expects to adjourn the special meeting of stockholders scheduled for 8:00 p.m. Eastern time on June 15, 2021, to June 17, 2021. The time of the adjourned meeting will be announced on June 15, 2021. Magnachip remains subject to the Merger Agreement. And Magnachip’s Board of Directors has not changed its recommendation that Magnachip stockholders vote “FOR” the proposal to adopt the Merger Agreement and approve the Merger.
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