TPG-backed chip tester UTAC is said to explore US$1 bil sale

(Apr 4): UTAC Holdings, the Singapore-based chip testing firm backed by Affinity Equity Partners and TPG, is exploring options for a sale of its business after completing a bond restructuring, people with knowledge of the matter said.

The company met potential advisers in recent weeks to discuss options that could include an initial public offering or sale, according to the people. Its owners could seek a valuation of about US$1 billion ($1.3 billion) including debt from any exit, the people said, asking not to be identified because the information is private.

Global A&T Electronics, which controlled most of UTAC’s operations, filed for bankruptcy in the US in December with a plan to quickly turn itself around. It said the debt load taken on from its buyout a decade ago had prevented the company from growing its business. UTAC completed a capital restructuring in January, cutting its funded debt from about US$1.1 billion to US$665 million.

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