CREATIVE TECHNOLOGY ANNOUNCES ACQUISITION OF 3DLABS - WORLDWIDE LEADER IN ULTRA HIGH-END PROFESSIONAL GRAPHICS
Acquisition Can Extend Leadership Into Additional Markets
SINGAPORE - March 11, 2002 - Creative Technology Ltd. (Nasdaq: CREAF), the worldwide leader in digital entertainment products for users of the personal computer and the Internet, today announced a definitive agreement under which Creative will acquire 3Dlabs Inc., Ltd. (Nasdaq: TDDD) for a combination of US$1.20 per share in cash and US$2.40 per share in Creative stock for each share of 3Dlabs.
On an approximate basis, Creative presently owns 1.8 million shares of 3Dlabs' currently issued share capital of 30.6 million shares. In addition, Creative owns warrants and convertible notes which, when exercised and converted, would provide an additional 9.4 million shares and give Creative an approximate 28% beneficial ownership of the then-total outstanding 3Dlabs shares. The cost to acquire those shares that Creative does not already own is estimated at US$34.6 million in cash and US$69.1 million of Creative stock for a total of US$103.7 million. These dollar amounts of Creative shares and cash are fixed; however, the number of Creative shares to be issued will be determined by the average closing sale price of Creative shares on the Nasdaq exchange over a ten-day period which will end five days prior to 3Dlabs' shareholder approval meeting. Based on Creative's closing price of US$13.10 per share as of Friday, March 8, 2002, this would represent approximately 5.3 million Creative shares to be issued. The total number of Creative shares issued to 3Dlabs' shareholders shall be subject to a cap of approximately 10 million Creative shares.
News source: t-break