Chartered Rights Issue (pdf)

Chartered Semiconductor Manufacturing (CSM) announced yesterday that they would be raising approximately US$300 million from a rights issue. Existing shareholders (as well as ADS holders) will be able to subscribe for 27 new Chartered shares at a price of S$0.07 for every 10 Chartered shares that they own.

The last traded price of Chartered was S$0.20 so the theoretical ex-rights price works out to be S$0.1065.

Singapore Technology Semiconductor (STS), a wholly owned subsidiary of Temasek Holdings, will take up its entire 59.36% of the rights. In addition, it will be on standby to take up any excess rights (up to 90% of total shares) not taken up by other shareholders.

Key dates are as follows:


Shares trade ex-rights: 16th March 2009 from 9am

Despatch of offer document: 23rd March 2009

Commencement of trading of Rights : 23rd March 2009 at 9am

Last day of trading of rights: 31st March 2009 at 5pm

Last day and time for acceptance and payment for Rights Shares and excess Rights Shares: 6th April 2009 at 5pm (930pm for electronic)

Expected date of trading of Rights Shares : 16th April 2009

Chartered shareholders would have the following options.

Assuming someone bought 10000 shares of Chartered at $0.20 (total cost $2000)

Option 1 (Subscribe for own rights)

Subscribe for 27000 rights shares at $0.07 each (total $1890)

Average cost of 37000 shares = $0.105

Option 2 (Subscribe for own rights and excess rights)
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