Contact Information: Investor Relations Contact: Tham Kah Locke Vice President of Corporate Finance Tel: (65) 6824 7788 Fax: (65) 6720 7826 email: Media Contact: Lisa Lavin Deputy Director of Corporate Communications Tel: (208) 939 3104 Fax: (208) 939 4817 email:
STATS ChipPAC Convenes EGM to Seek Approval of Proposed Capital Reduction
| Source: STATS ChipPAC
UNITED STATES--(Marketwire - February 21, 2008) - SINGAPORE -- 02/22/2008 -- STATS ChipPAC Ltd.
("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading
independent semiconductor test and advanced packaging service provider,
today announced that it will convene an extraordinary general meeting of
its shareholders ("EGM") on March 17, 2008 to seek shareholders' approval
to undertake a proposed capital reduction exercise ("Capital Reduction"),
with the intention to effect a proposed payout of up to US$813 million (the
"Cash Distribution") to shareholders of the Company, as announced on
January 11, 2008.
About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP) is
a leading service provider of semiconductor packaging design, assembly,
test and distribution solutions in diverse end market applications
including communications, digital consumer and computing. With global
headquarters in Singapore, STATS ChipPAC has design, research and
development, manufacturing or customer support offices in 10 different
countries. STATS ChipPAC is listed on the Singapore Exchange Securities
Trading Limited ("SGX-ST"). Further information is available at
www.statschippac.com. Information contained in this website does not
constitute a part of this release.
Certain statements in this release, including statements regarding the
proposed Capital Reduction and Cash Distribution, are forward-looking
statements that involve a number of risks and uncertainties that could
cause actual events or results to differ materially from those described in
this release. Factors that could cause actual results to differ from our
expectations include, but are not limited to, our ability to obtain debt
financing to fund the Cash Distribution and repay certain outstanding
indebtedness (including redeeming and/or repurchasing our senior notes) on
terms and conditions acceptable to us, obtaining requisite approvals needed
for the Capital Reduction, general business and economic conditions and the
state of the semiconductor industry; level of competition; demand for
end-use applications products such as communications equipment and personal
computers; decisions by customers to discontinue outsourcing of test and
packaging services; reliance on a small group of principal customers;
continued success in technological innovations; availability of financing;
pricing pressures including declines in average selling prices; the ability
to meet the applicable requirements for the termination of registration
under the U.S. Securities Exchange Act of 1934, as amended; ability to meet
specific conditions imposed for the continued listing or delisting of the
Company's securities on the SGX-ST; our substantial level of indebtedness;
potential impairment charges; adverse tax and other financial consequences
if the South Korean taxing authorities do not agree with our interpretation
of the applicable tax laws; ability to develop and protect our intellectual
property; rescheduling or canceling of customer orders; changes in products
mix; intellectual property rights disputes and litigation; capacity
utilization; delays in acquiring or installing new equipment; limitations
imposed by our financing arrangements which may limit our ability to
maintain and grow our business; changes in customer order patterns;
shortages in supply of key components; disruption of our operations; loss
of key management or other personnel; defects or malfunctions in our
testing equipment or packages; changes in environmental laws and
regulations; exchange rate fluctuations; regulatory approvals for further
investments in our subsidiaries; significant ownership by Temasek Holdings
(Private) Limited ("Temasek") that may result in conflicting interests with
Temasek and our affiliates; unsuccessful acquisitions and investments in
other companies and businesses; our ability to continue to successfully
integrate the operations of the former separate STATS and ChipPAC companies
and their employees; labor union problems in South Korea; uncertainties of
conducting business in China; natural calamities and disasters, including
outbreaks of epidemics and communicable diseases; and other risks described
from time to time in the Company's SEC filings, including its annual report
on Form 20-F dated March 12, 2007. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.