News

Gennum Increases Purchase Price To Acquire Tundra

April 19, 2009 by Jeff Shepard

Tundra Semiconductor Corp. and Gennum Corp. announced that they have amended the terms of their previously announced arrangement agreement, entered into on March 19, 2009, providing for the acquisition by Gennum of all of the issued and outstanding common shares of Tundra by way of plan of arrangement.

Pursuant to the amendment, Gennum has increased the aggregate purchase price for all of the Tundra Shares from approximately Cdn.$86 million (based on Gennum’s 5 day Volume Weighted Average Price ("VWAP") ended March 18, 2009) to approximately Cdn.$112 million (based on Gennum’s 5 day VWAP ended April 16, 2009), representing an increase of approximately 31%.

Pursuant to the amendment, the consideration payable by Gennum for each Tundra Share will be, at the election of the holder, Cdn.$5.81 in cash or 1.1679 common shares of Gennum ("Gennum Shares") or a combination thereof, subject to pro ration. Previously, Tundra shareholders could elect to receive for each Tundra Share Cdn.$4.43 in cash or 1.1575 Gennum Shares or a combination thereof, subject to pro ration.

Based on 19,326,053 Tundra Shares currently outstanding, in aggregate a total of Cdn.$60 million in cash (which represents an increase of Cdn.$5 million to the amount payable under the March 19 Arrangement Agreement) and 10.5 million Gennum Shares (which represents an increase of 2.5 million Gennum Shares to the number of Gennum Shares issuable under the March 19 Arrangement Agreement) will be issued to holders of Tundra Shares.

Based on Gennum’s 5 day VWAP of Cdn.$4.97 on the Toronto Stock Exchange ended April 16, 2009, the increased consideration values Tundra at Cdn.$5.81 per Tundra Share, assuming full pro ration, representing a 94% premium to Tundra’s 5 day VWAP ending March 18, 2009.

If all necessary approvals are obtained and the conditions contained in the Arrangement Agreement, as amended, are satisfied, Tundra and Gennum continue to expect that the Arrangement, as amended, will close on or about June 1, 2009.