STATS ChipPac Ltd

STATS ChipPAC Ltd.
(Incorporated in Singapore)
(Company Registration Number: 199407932D)

ANNOUNCEMENT

QUERY REGARDING TRADING ACTIVITY

STATS ChipPAC Ltd (the “Company”) refers to the questions from Singapore Exchange Securities Trading Limited (the “SGX-ST”) dated 15 May 2014, regarding the unusual price and volume movements in the shares of the Company.

The Company has received a non-binding expression of interest from a third party, with a view to a possible acquisition of all the shares in the Company subject to a number of conditions. The Company regularly conducts strategic reviews of, and considers various proposals in relation to, its business and operations with a view to maximising shareholder value. The Company is accordingly considering this approach. There is no assurance that this approach will result in any definitive agreement or transaction.

Save as set out above, the Company is not aware of any other possible explanation for the trading and the Company confirms its compliance with the listing rules, in particular, Rule 703 of the SGXST Listing Manual.

The Company will make an appropriate announcement in the event that there are any material developments on this matter. Shareholders of the Company and investors are therefore advised to exercise caution when dealing in shares in and other securities of the Company.

BY ORDER OF THE BOARD
Janet T. Taylor
General Counsel and Company Secretary
16 May 2014

Source: http://infopub.sgx.com/FileOpen/Announce...eID=297540

STATS ChipPac Ltd ($0.46) - Gonna to be an interesting play from now on.

http://www.cnbc.com/id/17388593

STATS ChipPac Ltd ($0.525) - fantastic gain today.

PUBLISHED MAY 21, 2014
HOCK LOCK SIEW

Why did STATS ChipPAC wait to be queried?
BYR SIVANITHY
sivan@sph.com.sg @RSivanithyBT

UNDER the existing regulatory regime, the Singapore Exchange's (SGX) role is mainly to signal caution to the market when it deems this necessary. This is accomplished via various mechanisms, the most familiar being the standard query that is despatched to a company when there is unusual trading in that company's shares.
Of course, how unusual is unusual can be debated, but most of the time SGX's queries do appear justified, at least to neutral market observers because the movements are clearly odd and deserve explaining. The problem is that most of the time, companies simply shrug their shoulders and nothing more is heard.
Then again, every once in a while, we encounter a welcome departure from the norm - a reply where the company discloses information that could explain the sudden interest in its shares. One might then assume that the system is working well but, on the contrary, questions are still possible.
The most recent example of an answer that might explain the unusual price and volume movements of shares came from semiconductor group STATS ChipPAC, whose share price has surged by more than half over just a few trading sessions since an unusual surge last Thursday.
On Thursday last week, STATS' shares opened half a cent higher at 34 cents, then crept up slowly throughout the morning session before touching 37 cents by early afternoon. The day's high of 39 cents was reached at 4.30pm, and at the close, the stock settled at 38.5 cents - a rise of five cents or 15 per cent on the day, and one that came with 8.9 million shares traded.
This volume was more than nine times the 953,000 shares done on Wednesday, by itself a sufficient cause to fire off a query. The Singapore Exchange query that came a few minutes before trading closed at 5pm severely limited the cautionary value since the market would have had only a few minutes to react.
Still, at least there was a query, even if it came close to the end of the session. We say this because some observers have rightly wondered why STATS had to be queried in the first place before offering the information that a third-party had expressed interest to acquire the company. Its response came the next day before the market started trading.
When its shares started to move in elevated volume on Thursday, why did the company not take the initiative to suspend trading immediately and follow up with an announcement of the third party's interest, even if non-binding, to acquire all its shares?
Much of course would depend on when STATS received the offer; if it was late in the day, then not saying anything is probably excusable. But if it was early in the day, or even before Thursday, you'd have to ask why the company waited for the exchange's query before volunteering the information.
Note that STATS' shares have continued to run since then, closing at 51 cents yesterday even after a pullback of 1.5 cents. Given the unusual share price and volume movements on Thursday, one can't rule out the possibility that news of a possible takeover had leaked.
The STATS incident is ongoing since the company has not said anything more about the offer. It does, however, raise a general question on how the exchange should deal with instances when companies disclose material information after a query.
Specifically, should the exchange pursue the matter if there was no suspension, the company reveals material information and the shares continue rising thereafter?

Stats Chippac ($0.645) - This counter has climbed more than 40% since I first started this thread just less than 3 weeks ago.

http://infopub.sgx.com/FileOpen/Announce...eID=300299

wow!
congrats.

LC



yesterday enemy has become tomorrow friend

(06-06-2014, 06:00 PM)crabcrab Wrote: http://infopub.sgx.com/FileOpen/Announce...eID=300299

Congrats. You may want to celebrate and eat a plate of delicious chilli crab.

[Image: ChilliCrab1_28_550x357.jpg]

(06-06-2014, 11:42 PM)Harvest Time Wrote:

(06-06-2014, 06:00 PM)crabcrab Wrote: http://infopub.sgx.com/FileOpen/Announce...eID=300299

Congrats. You may want to celebrate and eat a plate of delicious chilli crab.

[Image: ChilliCrab1_28_550x357.jpg]

A loss making company making such gains might end up like blumont.