China to enter Leading Edge ALD Market by Aixtron take over

Most focus on the reporting for the current Aixtron situation is typically focusing on MOCVD and LED business. However, I find it naturally much more interesesting in the sense of China taking over the ex-Genus ALD business unit based in Sunnyvale (USA). Aixtron is currently on the ALD Top 10 OEM ranking for ALD (Number 7 possibly) and this is a booming market because of multi patterning coming strong now and in the following nodes. Aixtron has a multi wafer ALD plattform that can most probably be used for multi patterning as well so this to me much more interesting potential than their LED business. In addition, Aixtron has had recent success on the Korean DRAM market. So just imagine the new situation if the next grand chip investment will be an etch company.

AIXTRON SE (FSE: AIXA; NASDAQ: AIXG) (“AIXTRON”) and Grand Chip Investment GmbH (“Grand Chip Investment”), a 100% indirect subsidiary of Fujian Grand Chip Investment Fund LP (“FGC”), have today entered into an agreement to take over AIXTRON. Fujian Grand Chip Investment Fund LP is a Chinese investment fund; 51% of which is held by the Chinese business man Zhendong Liu and 49% by Xiamen Bohao Investment Ltd.

Pursuant to the agreement, Grand Chip Investment has today announced its decision to launch a voluntary public takeover offer to acquire all of the outstanding ordinary shares of AIXTRON SE, including all ordinary shares represented by AIXTRON ADS. Under the terms of the agreement, AIXTRON shareholders will be offered 6.00 Euros in cash per each ordinary share. The transaction values AIXTRON’s equity, including net cash, at approximately 670 million Euros and reflects a 50.7% premium to the three-month volume weighted average share price prior to announcement. The offer shall be subject to certain closing conditions, including regulatory approvals and a minimum acceptance threshold of 60% of all of AIXTRON’s outstanding shares.

The agreement sets out the purpose and the principal terms of the transaction with FGC and the future strategy. FGC intends to support AIXTRON’s strategy going forward. R&D competency and AIXTRON’s existing technology shall be maintained at the existing technology centers. FGC has also agreed that AIXTRON shall further strengthen its technology and IP Portfolio, which shall remain vested with AIXTRON, including in Germany. AIXTRON’s existing global set up will be maintained and expanded with AIXTRON’s three technology hubs in Herzogenrath (Germany), Cambridge (UK) and Sunnyvale (USA). Further international technology hubs may be established. AIXTRON’s legal domicile and headquarters shall remain in Herzogenrath, Germany.

In the event the takeover is successful, Martin Goetzeler is to remain CEO of AIXTRON and Dr. Bernd Schulte is to remain in his function as COO. Following a successful closing of the transaction it is anticipated that Grand Chip Investment will nominate four candidates to the six-member Supervisory Board.