Montage Technology Gets Buyout Offer From Chinese State-owned Company

(RTTNews) - China-based chipmaker Montage Technology Group Ltd. (MONT) said Monday that is has received a takeover offer from Chinese state-owned Shanghai Pudong Science and Technology Investment Co. Ltd. to acquire the company for $21.50 in cash per ordinary share.

The offer price represents a 25.3 percent premium to Montage Technology's closing stock price of $17.16 on the Nasdaq on Friday.

Shanghai-based Montage Technology said its board of directors is reviewing and evaluating the preliminary, non-binding offer from Shanghai Pudong Science and Technology or PDSTI, but has not yet made any decision on the offer.

PDSTI is a wholly state-owned limited investment management company directly under Pudong New Area government of Shanghai. By the end of 2013, PDSTI had registered capital of RMB 2.6 billion and managed the assets of over RMB 10 billion.

Montage Technology provides various analog and mixed-signal semiconductor solutions for the home entertainment and cloud computing markets. The company, founded in 2004, provides set-top box solutions, including HDTV and SDTV semiconductor solutions, such as tuners, demodulators, and decoders.

MONT closed Friday's trading on the Nasdaq at $17.16, up $0.51 or 3.06 percent on a volume of 205,890 shares.