Troubled Chinese chipmaker Tsinghua Unigroup will see a consortium led by Beijing Jianguang Asset Management and Wise Road Capital becoming its strategic investors pending court approval in a proposed RMB 60bn ($9.4bn) restructuring plan. The deal would culminate a long restructuring process for the chipmaker. Alibaba Group, which was competing with state-backed Jianguang Asset Management (JAC Capital) to purchase the company and showed interest in November is said to be out of the deal. A source said, “The working group was concerned that if Alibaba was picked, some fundamental information about chips would have to be disclosed to the U.S. government and this info would be linked to national security”.
Tsinghua’s dollar bonds have jumped 14 points today, trading at ~65 cents on the dollar.
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