Shares of Magnachip Semiconductor (MX -1.50%) soared Friday morning, and were up by 11.3% as of 11:53 a.m. EDT after the company received an unsolicited buyout offer. The new offer carries a better price than a buyout agreement that was announced in March.
The South Korean semiconductor company had planned to go private in a deal with private equity fund Wise Road Capital, which offered $29 per share in cash in a transaction that valued it at $1.4 billion. But Magnachip on Friday said that it had received an alternative offer from Cornucopia Investment Partners to acquire the company at $35 per share in cash, valuing it at nearly $1.7 billion.
The company says that its board of directors will consult with its legal and financial advisors in order to "carefully review and consider" the new proposal. Magnachip says that it has reached an agreement with Wise Road Capital that grants the company until June 16 to discuss the potential deal with Cornucopia and assess whether or not the higher offer is superior overall.
Magnachip shareholders have not yet voted on the initial proposal from Wise Road Capital. In light of the new offer, management is postponing its special meeting of shareholders from June 15 to June 17. While Magnachip's board reviews the Cornucopia proposal, it is maintaining its recommendation for investors to vote in favor of the Wise Road Capital proposal.