In a statement last week, the company said it planned to buy the remaining equity interest in Semiconductor Manufacturing North China (Beijing) Corporation (SMNC), a subsidiary that is currently 51 per cent owned by SMIC.
The chipmaker said it would buy the stake from state-owned investors including the China Integrated Circuit Industry Investment Fund, the Beijing Semiconductor Manufacturing and Equipment Equity Investment Centre, Beijing E-Town International Investment & Development and Zhongguancun Development Group.
SMIC said the agreement was preliminary and aspects of the transaction were under discussion. SMIC’s Shanghai-listed shares were suspended from Monday for a period of no more than 10 trading days. SMIC’s Hong Kong-listed shares gained more than 5 per cent on Monday morning and later closed up nearly 4.9 per cent at HK$63.65.
Hua Hong’s Shanghai-listed shares stopped trading last month when it unveiled the plan, and resumed trading on Monday. Its Shanghai shares gained 12.5 per cent on Monday morning while its Hong Kong-traded shares fell 1 per cent.
