Stats ChipPAC shareholders OK capital-reduction plan

By Lisa Kerner

Charlotte, N.C., March 17 - Stats ChipPAC Ltd. shareholders approved a capital-reduction plan at a special meeting on Monday.

The plan will result in a cash distribution to shareholders of up to $813 million, according to a company news release.

Stats ChipPAC said it will announce the distribution date and the amount to be paid for each share.

In January, Stats ChipPAC said the distribution would be made with proceeds from the issue of additional debt securities and/or borrowings under credit facilities.

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, a prior news release stated.

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.

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

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