China’s National Silicon Industry Group (中國上海矽產業投資), a state-backed semiconductor investment fund, is interested in acquiring a majority stake in German silicon-wafer maker Siltronic AG, the latest potential Chinese takeover that could face political opposition, according to people familiar with the matter.
The group, known as NSIG, has contacted Wacker Chemie AG about potentially acquiring the Munich-based chemical maker’s 58 percent stake in Siltronic, said the people, who asked not to be identified because discussions are private.
The deal faces several hurdles including the Chinese fund’s unwillingness to pay a premium to the current market value and growing resistance among German and US officials to allow Chinese purchases of semiconductor-related assets, the people said.
Wacker Chemie may be reluctant to sell, particularly at a low price, and discussions are at an early stage, the people said.
Siltronic has also drawn interest from other Chinese bidders, the people said.
If NSIG does agree to buy the 58 percent stake, it would normally be required to make an offer to remaining shareholders under German rules.
Siltronic shares jumped as much as 6.6 percent in Frankfurt, Germany, after the takeover interest was reported. The stock gained 2.7 percent to 40 euros at 12:36pm local time, a record high. The shares have risen 77 percent this year, giving the company a market value of about 1.2 billion euros (US$1.27 billion).
A representative for NSIG could not be immediately reached for comment.
Wacker Chemie is still seeking to reduce its stake in Siltronic “in the medium term,” company spokesman Christof Bachmair said by telephone yesterday.
He declined to comment further.
A representative for Siltronic declined to comment.
Last year, Wacker Chemie spun off Siltronic, the third-largest maker of the hyper-pure silicon wafers used by chipmakers, to focus on its chemicals and poly-silicon divisions.
Siltronic, which employs about 3,800 people, has production sites in Germany, Singapore and Portland, Oregon. Its silicon wafers are used to make the chips found in consumer goods including mobile phones, laptops and cars, and its customers include Samsung Electronics Co and Texas Instruments Inc, according to a company presentation.
NSIG, which was established last year by China to invest in firms that make equipment and materials for semiconductors, has made investments in Europe this year including Finnish silicon wafer producer Okmetic Oyj.
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