State-owned conglomerate China Resources Group plans to pay RMB 11.7 billion ($1.6 billion) for a controlling stake in integrated circuit packaging leader JCET Group, as a giant industry investment fund steps back, reports Caixin. Pan Shi Hong Kong, a subsidiary of China Resources, will acquire a combined 22.53% of JCET from the semiconductor company’s biggest shareholders China Integrated Circuit Industry Investment Fund and SilTech Semiconductor (Shanghai), Shanghai-listed JCET said in an exchange filing Tuesday.
Pan Shi will pay RMB 29 for each of JCET’s shares, slightly higher than the Tuesday closing price. The stock rose 3% to close at RMB 29.11 Wednesday.
After the transaction, Pan Shi will replace the China Integrated Circuit Industry Investment Fund, known as the Big Fund, to become JCET’s largest shareholder with a 22.54% stake. The Big Fund’s holding will be reduced to 3.5% from 13.24%, while SilTech, a wholly owned subsidiary of Semiconductor Manufacturing International Corp., will exit JCET after selling its entire 12.79% stake to Pan Shi.