HK Stock Market Move | Hua Hong Semi (01347) surged more than 8%, planning to spend 8.27 billion RMB to acquire the equity of Huahong Microelectronics.

HUA HONG SEMI (01347) rose more than 8%, at the time of publication, up 7.54% to HK$79.9, with a turnover of HK$3.89 billion. On the news front, HUA HONG SEMI announced in multiple announcements that the company plans to acquire a total of 97.4988% equity of Huali Micro held by four trading parties, including Huahong Group, through the issuance of shares, and intends to issue shares to raise matching funds from no more than 35 specific objects meeting the conditions. The transaction price for this transaction is RMB 8.268 billion, and the proposed matching funds raised is RMB 7.556 billion. This transaction focuses on the overlapping businesses and assets corresponding to the 65/55nm and 40nm process nodes of both parties, which will solve the historical issue of intra-industry competition after the transaction is completed, optimize the company's governance structure and business independence, and meet regulatory requirements and market expectations. As a wafer foundry enterprise with the most comprehensive coverage of specialty process platforms, Hua Hong Semiconductor will directly integrate into Huali Micro's 12-inch wafer foundry production line and mature process platforms through this consolidation, and the company's production capacity will continue to grow.