Another Bloodshed GLC story.
http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSHKG24804520090309
Chartered to boost capital in weak sector - sources
* Shares fall 20 pct; company requests trading halt
* Chartered is fifth firm to receive funding from Temasek (Adds analyst, detail)
By Michael Flaherty and Saeed Azhar
HONG KONG/SINGAPORE, March 9 (Reuters) - Chartered Semiconductor plans to raise about $300 million through a rights offering, sources said, as the struggling contract chip maker looks to boost its capital base in a battered sector.
Shares in Singapore-based Chartered (CSMF.SI) tumbled more than 20 percent on Monday and the company requested trading in its stock to be halted.
The sources did not want to be named because they were not authorised to speak on the record about the matter. Officials at Chartered could not be reached for comment.
Sources said Nasdaq-listed Chartered (CHRT.O) will likely get backing from Singapore's state investor Temasek Holdings [TEM.UL], which has a 59 percent stake in the technology firm, making it the fifth company Temasek has funded since late last year.
"Chartered's balance sheet does not look good this year and they really need funds for working capital," said Nomura semiconductor analyst Rick Hsu in Taipei. "The company is struggling and its capacity utilisation rate is at a low level."
A Temasek spokeswoman declined comment.
Chartered said in January it expected further losses and was cutting 600 jobs after posting a quarterly loss as customers cut orders in the global economic slowdown. [ID:nN29315136]
Moody's Investors Service earlier this month downgraded Chartered's unsecured bond ratings to Ba2 from Ba1 and said the rating continues to be on review for a further downgrade. Standard & Poor's cut Chartered's long-term credit rating last month.
State-controlled Chartered ranks alongside China's Semiconductor Manufacturing International Corp (SMIC) (0981.HK) in the market for custom-built microchips, which is dominated by larger rival Taiwan Semiconductor Manufacturing Co (TSMC) and United Microelectronics Corp (2303.TW).
Deutsche Bank (DBKGn.DE), Citigroup (C.N) and Morgan Stanley (MS.N) are working with Chartered on the offering, sources said.
Chartered's shares had been rising this year on speculation of a possible merger with its larger Taiwanese chip-makers, but analysts poured cold water on such a possibility. Chartered's tumbled about 80 percent last year.
"They can buy them through venture capital companies, but I don't think they will spend money on this now. In such a downturn, the would like to keep cash on hands and try to cut costs," said Nomura's Hsu.
Teamsek has backed at least four rights offerings since late last year. These included capital raising by Standard Chartered (STAN.L) and Singapore's DBS Group (DBSM.SI).
i feel that if they really injet fund into chartered then it is throwing good money after bad money.
Originally posted by 38�Ž:Another Bloodshed GLC story.
http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSHKG24804520090309
Chartered to boost capital in weak sector - sources
* Shares fall 20 pct; company requests trading halt
* Chartered is fifth firm to receive funding from Temasek (Adds analyst, detail)
By Michael Flaherty and Saeed Azhar
HONG KONG/SINGAPORE, March 9 (Reuters) - Chartered Semiconductor plans to raise about $300 million through a rights offering, sources said, as the struggling contract chip maker looks to boost its capital base in a battered sector.
Shares in Singapore-based Chartered (CSMF.SI) tumbled more than 20 percent on Monday and the company requested trading in its stock to be halted.
The sources did not want to be named because they were not authorised to speak on the record about the matter. Officials at Chartered could not be reached for comment.
Sources said Nasdaq-listed Chartered (CHRT.O) will likely get backing from Singapore's state investor Temasek Holdings [TEM.UL], which has a 59 percent stake in the technology firm, making it the fifth company Temasek has funded since late last year.
"Chartered's balance sheet does not look good this year and they really need funds for working capital," said Nomura semiconductor analyst Rick Hsu in Taipei. "The company is struggling and its capacity utilisation rate is at a low level."
A Temasek spokeswoman declined comment.
Chartered said in January it expected further losses and was cutting 600 jobs after posting a quarterly loss as customers cut orders in the global economic slowdown. [ID:nN29315136]
Moody's Investors Service earlier this month downgraded Chartered's unsecured bond ratings to Ba2 from Ba1 and said the rating continues to be on review for a further downgrade. Standard & Poor's cut Chartered's long-term credit rating last month.
State-controlled Chartered ranks alongside China's Semiconductor Manufacturing International Corp (SMIC) (0981.HK) in the market for custom-built microchips, which is dominated by larger rival Taiwan Semiconductor Manufacturing Co (TSMC) and United Microelectronics Corp (2303.TW).
Deutsche Bank (DBKGn.DE), Citigroup (C.N) and Morgan Stanley (MS.N) are working with Chartered on the offering, sources said.
Chartered's shares had been rising this year on speculation of a possible merger with its larger Taiwanese chip-makers, but analysts poured cold water on such a possibility. Chartered's tumbled about 80 percent last year.
"They can buy them through venture capital companies, but I don't think they will spend money on this now. In such a downturn, the would like to keep cash on hands and try to cut costs," said Nomura's Hsu.
Teamsek has backed at least four rights offerings since late last year. These included capital raising by Standard Chartered (STAN.L) and Singapore's DBS Group (DBSM.SI).
i think if they really inject fund into chartered then it is throwing good money after bad money.