Stats ChipPAC sets date for shareholder vote on capital reduction plan

By Lisa Kerner

Charlotte, N.C., Feb. 21 - Stats ChipPAC will hold a special meeting of shareholders on March 17 to approve a proposed capital reduction plan.

The plan would result in a cash distribution to shareholders of up to $813 million, according to a 6-K filed with the Securities and Exchange Commission.

Stats ChipPAC announced the plan in January, saying the reduction would be made out of proceeds from the issue of additional debt securities and/or borrowings under credit facilities.

It was previously reported that the reduction is conditioned on adequate debt financing as well as the repayment of some outstanding debt, including the redemption and/or repurchase of its 6¾% senior notes due 2011 and its 7½% senior notes due 2010, and approval from the Singapore Exchange Securities Trading Ltd.

The cash distribution was estimated at $0.37 per share, assuming a potential issued share capital of $2.026 billion, comprised of 2,194,715,423 shares and including new shares from the exercise of options as well as the conversion of notes.

Stats ChipPAC is a Singapore-based provider of semiconductor packaging design, assembly, test and distribution products.

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