Abu Dhabi Firm To Buy Chartered Semi

Abu Dhabi-based Advanced Technology Investment Co., best known for buying a stake in Advanced Micro Devices‘ spin-off GlobalFoundies, has agreed to acquire Chartered Semiconductor (CHRT), a Singapore-based contract chip maker. The deal is expect to close in Q4.

Terms call for ATIC to pay $1.8 billion U.S., for a total value of $3.9 billion including assumption of debt and convertible redeemable preference shares; holders will receive $18.64 per ADS. GlobalFoundries CEO Doug Grose would become CEO of the combined operations, with Chartered CEO Chia Song Hwee as COO.

Temasek Holdings, a Singapore government investment fund which owns 62% of Chartered, has agreed to vote in favor of the deal.

CHRT today is down 53 cents, or 2.8%, to $18.25.