Spreadtrum's (Nasdaq:SPRD)
time as a publicly-traded semiconductor company wasn't all that long,
and it certainly wasn't always easy, but it looks like it's coming to a
happy conclusion for shareholders. Speadtrum announced Friday morning
that it had accepted an improved bid from Tsinghua Unigroup and agreed to sell itself for $31 per share in cash.
A Fair Bid...
Not only was Tsinghua's final bid about 10% better than its initial
bid, but it represents a takeout price above the company's prior
all-time high in late 2011. Spreadtrum is selling itself for about 14
times its trailing EBITDA, only a very slight discount to the mid-teens average of well-known mobile chip companies like Avago (Nasdaq:AVGO), Broadcom (Nasdaq:BRCM), and Qualcomm (Nasdaq:QCOM). Moreover, relative to the company's cash flow growth potential, this was a very reasonable price for the stock.
Read more here:
http://www.investopedia.com/stock-analysis/071213/so-long-spreadtrum-sprd-brcm-qcom-intc.aspx
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