24 October 2016

Germany withdraws clearance of Grand Chip Investment's takeover of Aixtron

Deposition equipment maker Aixtron SE of Herzogenrath, near Aachen, Germany says that the German Federal Ministry of Economics and Energy has withdrawn the Clearance Certificate issued on 8 September to China's Fujian Grand Chip Investment Fund LP (and indirect shareholder of Grand Chip Investment GmbH) and announced a reopening of review proceedings in connection with Grand Chip Investment's proposed offer to acquire Aixtron. Aixtron says that it was informed of the decision in the late evening of 21 October.

In late May, Aixtron entered into an agreement for Grand Chip Investment GmbH to take it over. Fujian Grand Chip Investment Fund LP is held 51% by Chinese businessman and private investor Zhendong Liu and 49% by Xiamen Bohao Investment Ltd (an investment entity indirectly controlled by Chinese private investors Zhongyao Wang and Wanming Huang).

Fujian Grand Chip (FGC) hence said that it would launch a voluntary public takeover offer to acquire all of the outstanding ordinary shares of Aixtron SE, including all ordinary shares represented by Aixtron ADS. Shareholders would be offered €6 per ordinary share, valuing Aixtron's equity (including net cash) at about €670m and reflecting a 50.7% premium to the three-month volume weighted average share price prior to the announcement.

Aixtron and FGC said that the transaction aimed to support Aixtron's long-term R&D activities to bring new products and technologies to market, support the execution of the firm's current strategy and technology roadmaps, and improve its ability to compete and grow in China. Specifically, R&D competency and Aixtron's existing technology were to be maintained at the existing technology centers. FGC also agreed that Aixtron would further strengthen its technology and IP portfolio, which would remain vested with Aixtron, including in Germany. In addition, Aixtron's existing global set up would be maintained and expanded at its three technology hubs in Herzogenrath (Germany), Cambridge (UK) and Sunnyvale, CA (USA), possibly supplemented by further international technology hubs. Aixtron's legal domicile and headquarters would remain in Herzogenrath. Martin Goetzeler was to remain chief executive officer of Aixtron and Dr Bernd Schulte chief operating officer, with FGC nominating four candidates to Aixtron's six-member Supervisory Board.

See related items:

Aixtron's increased orders in Q2 herald recovery in second-half 2016

Aixtron agrees €670m takeover by Fujian Grand Chip Investment Fund

Aixtron continues reorganization in 2015

China's San'an expands by ordering 50 Aixtron MOCVD systems

See: Aixtron Company Profile

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