SHANGHAI, China, May 8, 2014 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA Microelectronics" 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 responds to the public announcement made by Shanghai Pudong Science and Technology Investment Co., Ltd. ("PDSTI") and an open letter addressed to the Company's Board of Directors dated May 7, 2014 (collectively the "PDSTI Announcement and Letter"). The Company is issuing this announcement to clarify certain facts and correct certain misinformation contained in the PDSTI Announcement and Letter.
1. During the competitive bidding process last year, the Company did not reach any agreement with PDSTI who did not provide the Company with any credible proof (e.g., bank commitment letter) for the Chinese bank financing guarantee claimed in the PDSTI Announcement and Letter or even PDSTI's own financial statements. The Company was and is not aware of any bank credit committee approval secured by PDSTI for such claimed bank financing guarantee.
2. Multiple interested parties participated in last year's competitive bidding process. Among these parties, PDSTI's proposal was not only significantly less favorable than Tsinghua Unigroup Ltd.'s proposal in terms of price and other key commercial terms but also much less substantiated in terms of funding capability. The Company also notes that PDSTI has a track record of making non-binding acquisition proposals but to date has not completed any major overseas acquisition.3. The Company is required, and has always been open, to consider transactable superior proposals. PDSTI has not made any alternative proposal to the Company or provided further information about its financing capability since last year, and it had not contacted the Company for multiple months prior to issuing the PDSTI Announcement and Letter. 4. The Company is a foreign private issuer under U.S. securities laws and it complies with all the mandatory reporting requirements including filing the annual report on Form 20-F and furnishing periodic reports on Form 6-K.
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