JCET&rsquo s announcement suggest that while a deal is still possible, it will likely be after the next 3 months (after Nov&rsquo 14). And given that Huatian has already dropped out of the race, a bidding war for Stats is less likely. (Although news wires had in the past suggested possible interests from Samsung, Hon Hai and Advance Semiconductor Engineering) We had previously estimated that Temasek&rsquo s all on cost for their 83.4% stake could be somewhere close to the 80 cents level. At the height of the speculation interest last week (when both Huatian and JCET&rsquo s stocks were suspended), Stats had traded up to an intra-day high of 78 cents. 

 

 

Meanwhile, due to the latest announcements from both JCET and Huatian, we believe the unwinding of speculative interests in the stock from last week&rsquo s huge volumes could potentially see the stock coming close to its net asset value sometime in the next 3 months. (when the Bloomberg article was published last week about a potential deal by Huatian and JCET, Stats&rsquo share price was about 60 cents) As with all M& A situations, and as warned by management, there is no assurance that any of such discussions will eventually result in any definitive agreement or transaction. (Read more from Lim & Tan Research)

 

Technical Analysis