More than 20% increase in pre-market explanation
- Magnachip Semiconductor Corp’s (NYSE: MX) share price rose more than 20% before market. That’s why it happened.
Magnachip Semiconductor Corp’s (NYSE: MX) share price rose more than 20% before market. Investors respond positively to Magnachip Semiconductor Corporation confirming receipt of 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 common shares of Magnachip, with a par value of $ 0.01 per share, for $ 35 per share in cash.
As previously announced, on March 25, 2021, Magnachip entered into an agreement and plan to merge with South Dearborn Limited, an exempt company incorporated in the Cayman Islands with limited liability formed by a subsidiary of Wise Road Capital LTD and Michigan Merger Sub, a subsidiary wholly owned by South Dearborn, pursuant to which Merger Sub will be amalgamated with and into Magnachip, Magnachip continuing its existence as a corporation under General Corporation Law of the State of Delaware as a surviving corporation of the amalgamation and becoming a -subsidiary owned by South Dearborn.
Under and subject to the terms of the Amalgamation Agreement, each issued and outstanding Common Share immediately prior to the Effective Time of the Amalgamation will be canceled and cease to exist and will automatically be converted into a 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 entered into an agreement that until 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 should lead to a higher proposition.
Magnachip’s board of directors has yet to take such a decision. In light of the proposal, Magnachip expects to adjourn the special meeting of shareholders scheduled for June 15, 2021 at 8:00 p.m. Eastern time to June 17, 2021. The adjourned meeting time 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 to Magnachip shareholders to vote “FOR” the proposal to adopt the Merger Agreement and approve the Merger.
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