Aixtron Acquisition Clearance Withdrawn by German Government

Aixtron SE, which is located in Herzogenrath, near Aachen, Germany, reported that the German Federal Ministry of Economics and Energy withdrew its Clearance Certificate issued on September 8, 2016, that would have allowed Fujian Grand Chip Investment GmbH to take over Aixtron SE.

The German Federal Ministry of Economics and Energy also announced a reopening of review proceedings related to Grand Chip Investment’s proposed offer to take over Aixtron SE. Aixtron is a producer of MOCVD equipment, which is frequently used to produce LEDs.

Fujian Grand Chip Investment Fund LP is an indirect shareholder of Grand Chip Investment GmbH. Aixtron noted that it was informed of the decision on October 21.

Towards the end of May of 2016, Aixtron agreed to be acquired by Grand Chip Investment GmbH. Fujian Grand Chip (FGC) said that it offered to purchase all of the outstanding ordinary shares of Aixtron SE, including all of the common shares that Aixtron ADS represented. According to the proposed acquisition agreement, shareholders would be offered €6 per ordinary share.

The proposed price was 50.7% higher than the three-month volume weighted average share price before the announcement. The volume of shares at the proposed price places the value of Aixtron’s equity (including net cash) at about €670m.

Aixtron said that the money from the transaction would support its long-term R&D activities for bringing new products and technologies to market, support its current strategy and technology roadmaps, and improve its competitiveness and growth potential in China.

Under the terms of the proposed buyout, Aixtron would maintain its R&D competency and its existing technology at the firm’s existing technology centers. The companies also agreed that Aixtron would further strengthen its technology and IP portfolio, which would remain vested with Aixtron, including in Germany. In addition, Aixtron’s existing global organization would be maintained and expanded at its three technology hubs in Herzogenrath (Germany), Cambridge (UK), and Sunnyvale, California (USA).

Aixtron’s headquarters would remain in Herzogenrath. Martin Goetzeler was to remain Aixtron’s CEO, and Dr. Bernd Schulte would remain COO. The proposed acquisition would have allowed FGC to nominate four candidates to Aixtron’s six-member Supervisory Board.

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