Magnachip To Be Taken Private By Wise Road Capital In $1.4 Bln Deal – Quick Facts

Magnachip Semiconductor Corp. (MX), the South Korean provider of display and power solutions, announced Friday that it has entered into a definitive agreement with two investment vehicles established by private equity fund manager Wise Road Capital Ltd. and certain of its limited partners.

Under the terms of the Agreement, Magnachip shareholders will receive $29.00 in cash for each share of Magnachip’s common stock they currently hold, representing a premium of approximately a 54% premium to the unaffected closing stock price on March 2, 2021, the last trading day before media reports of third-party interest in acquiring Magnachip.

The all-cash transaction has an equity value of approximately $1.4 billion. The transaction is fully backed by equity commitments and not contingent on any financing conditions.

Following the closing of the transaction, Magnachip’s management team and employees are expected to continue in their roles, and the Company will remain based in Cheongju, Seoul and Gumi, South Korea. The transaction is expected to be seamless for customers and employees across Magnachip’s businesses.

Wise Road intends to work together with Magnachip’s management team to pursue the next step in the Company’s growth strategy and transform the Company into a true industry leader in the global display and power markets.

The Board of Directors of Magnachip has unanimously approved the agreement and recommends that Magnachip shareholders vote in favor of the transaction. The transaction is expected to close during the second half of 2021, subject to customary closing conditions, including the receipt of shareholder and regulatory approvals.

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