Steady as she goes
First of all, this won't be the last renewal of Qualcomm's NXP tender offer. The company has not yet collected the minimum tendered shares required to actually close the deal, but Qualcomm remains committed to the project.
"The tender offer will continue to be extended until all conditions are satisfied or waived, or until the tender offer is terminated," says Qualcomm's press release. "The transaction is expected to close by the end of calendar 2017."
The closing date may still vary, depending on how quickly the companies can collect the necessary regulatory approvals in several international jurisdictions. At the end of the day, Qualcomm also needs commitments from the holders of at least 80% of NXP's outstanding shares.
The percentage of tendered shares now stands at 17.2%, up from 14.8% in early February. If this sounds like slow progress, keep in mind that the merger is not expected to close for another nine months or so -- and Qualcomm would still be happy to accept your tendered shares tomorrow if all the deal conditions were triggered today. There's no harm to playing the long waiting game here, and many shareholders are doing exactly that.
Qualcomm and NXP continue to work on their regulatory approval processes, hoping to complete their business combination as quickly as possible. The larger semiconductor veteran wants to get started on folding NXP's automotive computing and Internet of Things expertise into its day-to-day operations.
But it's not that easy to just take the leap. On top of the regulatory reviews, Qualcomm is liquidating large portions of its investments in overseas treasury bonds in order to raise cash for the NXP buyout. This is a long process, easily stretching into the second half of the calendar year, and the companies are nowhere near ready to actually pull the trigger today.
So the next few tender-offer extensions will be low key, with modest increases to the amount of tendered shares and no huge breakthroughs. It's simply too early for that kind of action.