SHANGHAI, China, Nov. 11, 2013 (GLOBE NEWSWIRE) -- Tsinghua Unigroup Ltd. (" Tsinghua Unigroup"), an operating subsidiary of Tsinghua Holdings Co., Ltd., a solely state-owned limited liability corporation funded by Tsinghua University in China, and RDA Microelectronics, Inc. (Nasdaq:RDA) (" RDA" or the " Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today jointly announced that they have entered into a definitive merger agreement under which Tsinghua Unigroup will acquire all of the outstanding ordinary shares of RDA for US$18.50 per American Depositary Share (or US$3.0833 per ordinary share, each American Depositary Share representing six ordinary shares). The merger values RDA's equity at approximately US$910 million, on a fully diluted basis. The purchase price represents a premium of approximately 33.3% over the closing price of RDA's American Depositary Shares on September 26, 2013, the last trading day prior to the announcement by RDA of the receipt of a preliminary non-binding proposal letter to acquire RDA from a third party.
The transaction is subject to approval by the shareholders of RDA, and antitrust and other regulatory approvals, and is not subject to any financing condition. The transaction is expected to close in the first half of 2014.
The Company's Board of Directors unanimously approved the merger agreement and recommends that the Company's shareholders vote to approve the merger agreement. RDA expects to hold a special meeting of its shareholders to consider and act upon the proposed transaction as promptly as practicable. Details regarding the record date for, and the date, time and place of, the special meeting will be included in a press release when finalized."We are very excited to be adding RDA to the Tsinghua Unigroup family of companies," commented Mr. Zhao Weiguo, Chairman and President of Tsinghua Unigroup. "RDA will complement our existing portfolio in consumer products, protection and support and will benefit from our vast IP library and unique access to important capital markets in China."