MediaTek Inc. and MStar Semiconductor, Inc. Announce Merger Agreement

TAIWAN, Hsinchu – 14 August, 2012 – MediaTek Inc. (TSE:2454;MediaTek) , a leading fabless semiconductor company for wireless communications and digital multimedia solutions, announced a tender offer on June 22, 2012 to acquire 40% to 48% outstanding shares of MStar Semiconductor, Inc. (TSE:3697;Mstar). For each MStar share, MediaTek paid 0.794 MediaTek shares and NT$1 in cash. The tender offer period ended on August 13 and MediaTek will acquire 48% of MStar (254 million shares) after the settlement completed. Both companies announced today that their Board of Directors have approved a merger agreement under which MediaTek will fully merge MStar, using MediaTek shares as consideration for the merger, under the same terms as the previous tender offer. The tentative effective date is January 1, 2013, subject to approvals of the shareholders of both companies and the relevant legal and regulatory authorities.

Looking ahead, MediaTek will continue to pursue technological innovation through utilizing the synergies to be obtained from integrating the resources of the two companies after the completion of the merger. MediaTek expects to continue to strengthen the breadth and depth of its product portfolio in order to provide the best products and services to its customers and further optimize shareholder value.

 

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About MediaTek

Since 1997, MediaTek has been a pioneering fabless semiconductor company and a market leader in cutting-edge systems-on-chip (SoC) for mobile devices, wireless networking, HDTV, DVD and Blu-ray. Our tightly-integrated, innovative chip designs help manufacturers optimize supply chains, reduce the development time of new products, and extend a competitive edge in crowded markets. Through MediaTek Labs, the company is also building a developer hub that will support device creation, application development, and services for the Internet of Things era. By building technologies that help connect individuals to the world around them, MediaTek is enabling people to expand their horizons and more easily achieve their goals. We believe anyone can achieve something amazing. And we believe they can do it every single day. We call this idea Everyday Genius and it drives everything we do. Visit mediatek.com for more information.

 

About MStar Semiconductor, Inc.
MStar Semiconductor, Inc. (“MStar”) is a world-class leader in Application Specific ICs (“ASIC”) with a focus on consumer electronic products and communication applications. Since the inception in 2002, MStar has established a strong brand and leadership position in LCD controller, analog and digital TV, set-top box, and mobile communication applications by fully leveraging its core expertise of cutting-edge design capabilities, continuous innovation and premier customer-focused services. Headquartered in Taiwan, MStar has a comprehensive global footprint covering over 15 international R&D and customer support centers to provide a full range of total solutions for various consumer electronic applications. MStar went public in 2010 and is listed on Taiwan Stock Exchange.