Chartered Semiconductor tumbles on rights issue plan

The Singapore chip maker is seeking $300 million with Temasek ready to buy up to 90% of the deal.

Shares in Chartered Semiconductor Manufacturing tumbled 39% yesterday after the Singapore-listed chip maker confirmed on Monday that it will seek S$464 million $300 million in fresh capital through a rights issue. The sell-off was likely sparked by the deep discount to the market price, which will severely reduce the earnings and book value per share for shareholders who do not wish to increase their exposure to a loss-making company in an industry where the near-term recovery prospects are questionable....

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