Elliott Advisors Welcomes Qualcomm's Increased Offer For NXP Semiconductors

(RTTNews) - Elliott Advisors (UK) Limited, which advises funds that collectively constitute one of the largest shareholders in NXP Semiconductors N.V. (NXPI), said it has entered into a tender and support agreement with Qualcomm River Holdings B.V., a subsidiary of Qualcomm Inc. (QCOM).

The tender and support agreement is in connection with Qualcomm River Holdings' agreement to improve the terms of its offer to acquire all of the outstanding shares of NXP.

Elliott noted that the amended purchase agreement between Qualcomm River Holdings and NXP contemplates an increased cash consideration payable to NXP shareholders of $127.50 per share, from the prior offer price of $110 per share. This represents an increase of 16 percent, or about $5.9 billion in aggregate equity value.

The amended purchase agreement also enhances certainty of closing through Qualcomm River Holdings' agreement to reduce the minimum tender condition from 80 percent to 70 percent, and confirm certain regulatory commitments.

Elliott said it believes that Tuesday's announcement reflects a positive outcome for all NXP shareholders and is pleased that the company's value has been recognized in the revised transaction terms. Elliott added that it looks forward to supporting the transaction pursuant to the terms of its binding commitment to tender.

Further, Elliott believes that the revised transaction is an attractive outcome for shareholders of both Qualcomm and NXP.