Datang to increase stake in SMIC to 19.14 pct
Shanghai. August 17. INTERFAX-CHINA - Shanghai Stock Exchange-listed Datang Telecom Technology Industry Holdings Co. Ltd. (Datang Holdings) is to increase its stake in leading domestic semiconductor foundry Semiconductor Manufacturing International Corp. (SMIC) to 19.14 percent, SMIC announced on Aug. 16.
According to the announcement, Datang Holdings will purchase 1.53 billion SMIC shares for $102 million.
SMIC, which is listed on both the Hong Kong and New York stock exchanges, will use the funds to improve its production capabilities, the announcement said.
In Nov. 2008, Datang Holdings invested $171.8 million in SMIC to become its majority shareholder with a 14.35 percent stake, Interfax previously reported.
Datang Holdings is a subsidiary of Datang Telecom Technology Industry Group, a domestic telecom equipment vendor which led the development of China's TD-SCDMA third generation (3G) mobile standard.
Following the announcement, SMIC's share price on the New York Stock Exchange slid 2 percent to close at $3.38 on Aug. 16. On the Hong Kong Stock Exchange the share price was down 3.7 percent, closing at HK$ 0.52 ($0.07) at noon on Aug. 17.