SOITEC

Soitec proposed two successive capital increases for a total consideration of €130 to €180 million, supported by CEA Investissement, NSIG and Bpifrance

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Soitec proposed two successive capital increases
for a total consideration of €130 to €180 million, supported by CEA Investissement, NSIG and Bpifrance

Bernin, France, 10 February 2016 - Soitec (Euronext Paris), a world leader in manufacturing of innovative semiconductor materials, today announces its intention to carry out two capital increases for a total amount between 130 million and 180 million Euros:

• a reserved capital increase for a total amount of €76.5m, at a price of 0.55€ per share;
• a subsequent capital increase with preferential subscription rights ("rights issue") for a total amount of €53.5m to €103.5m. The size of the rights issue will be adjusted to finance potential OCEANE 2018 buy-back opportunities at attractive conditions from a shareholders' perspective.

Following the two operations, CEA Investissement ("CEAI"), National Silicon Industry Group ("NSIG") and Bpifrance Participations ("Bpifrance") would each hold 14.5% of the company's shareholding. CEAI would have the option to increase its stake to 15% thereafter.

Purpose of the operations

The proceeds from the issuance are intended to finance investments in FD-SOI production capacity  and strengthen Soitec's balance sheet through the reimbursement of the loans maturing in May 2016 and the potential buy-back of the OCEANE 2018 notes.

Soitec's decision to invest further in FD-SOI capacities complies with the group's strategic reorientation of its activities on electronics and the promising perspectives on widespread FD-SOI adoption in the semiconductor industry, as two of the four largest foundries in the world reported moving into mass production and performing multiple tape-outs using FD-SOI wafers.

Soitec's stronger financial position will enable it to finance the investments needed to reach full capacity with FD-SOI 300mm at its Bernin II site (France) and to capture more of the major growth potential in the market for consumer, automotive and industrial applications.

Paul Boudre, CEO and Chairman of Soitec's Board of Directors, made the following comments: "The capital increases we are proposing are intended to strengthen Soitec's financial position, as well as helping to finance our growth and giving us a stabilized shareholding. I am delighted that our existing shareholder Bpifrance is putting its trust in us again, and I very much look forward to welcoming as shareholders CEA Investissement, a subsidiary of CEA, our long-standing research and development partner, and NSIG, a Chinese industrial investment group whose specialisation in the semiconductor industry will provide a vital edge in ensuring the success of our FD-SOI technology in China. We are counting on the support of all our shareholders, who will be invited to vote on this operation; it is crucial to Soitec's future and to the continuation of the operational momentum we have built up since we decided to focus on the Electronics business."