Temasek to invest S$103M in AEM private placement

Singapore five-dollar note Photo by Leslie Shaffer

Singapore state-owned investment company Temasek Holdings will subscribe for 26.8 million new shares of semiconductor-test provider AEM Holdings at S$3.8477 each to raise S$103.1 million, the Singapore-listed company said in a filing to SGX Friday.

The new shares represent 9.5 percent of AEM’s total issued shares currently, the filing said.

The subscription price is a discount of around 6.01 percent to the weighted average price of around S$4.094 for trades on Thursday.

The net proceeds are earmarked to invest in next-generation testing capabilities, to deepen research and development for product portfolio expansion and to fund mergers and acquisitions, AEM said.

Loke Wai San, non-executive chairman at AEM, said it was “extremely meaningful” to have Temasek as a new investor.

“At a time of significant change and opportunity in the semiconductor industry, the backing by a globally connected investor such as Temasek allows AEM to lean more purposefully into our growth plans,” Loke said in the statement.

Russell Tham, joint head of enterprise development group and of strategic development at Temasek, has been nominated to AEM’s board of directors, to take effect after the placement is completed, the filing said.  Prior to joining Temasek in May 2020, Russell spent two years at ST Engineering and 24 years at Applied Materials, the filing said.

AEM’s products include customized, application-specific semiconductor and electronics test and handling services for companies
serving the advanced computing, 5G, and AI markets, the statement said. The company’s manufacturing plants are located Singapore, Malaysia, Indonesia, China, Finland and Vietnam.

In 2020, the company posted record revenue of S$519 million.

After resuming trade at 2:30 p.m. SGT, shares of AEM were down 2.45 percent at S$3.99 at 2:49 p.m. SGT.