Samsung buys CSR’s mobile business

CSR has entered into a conditional binding agreement with Samsung for the transfer of CSR's development operations in handset connectivity and location, including 310 people, together with certain rights over CSR's technology in these areas for a consideration of US$310 million in cash. None of the revenues associated with CSR's existing handset products will be transferred. In addition, Samsung will invest US$34.4 million in return for new ordinary shares in CSR representing 4.9 per cent of the current issued share capital of the Company at a price of 223 pence per share on completion of the Transaction. The Transaction is conditional, amongst other things, upon obtaining certain Korean anti-trust and other regulatory clearances, the transfer of a minimum number of employees to Samsung and the approval of the Transaction by the Company's shareholders. Completion of the Transaction and the Return of Capital are expected to occur during the fourth quarter of 2012. Joep van Beurden, CEO of CSR, said: "This transaction will accelerate our transformation into a higher gross margin platform company operating in attractive growth markets where we have a leading market position. As a result, we will be a more competitive, more differentiated and more profitable business." "The value achieved for our handset operations reflects the market leadership of our handset connectivity and location technology created through the talent, expertise and dedication of our people. This transaction unlocks material value for our shareholders, who will also benefit from a significant return of capital." "I believe that under Samsung's ownership the handset operations will be in a better position to prosper in the global handset market. I would like to thank all our colleagues who will be transferring to Samsung for their outstanding service to CSR over many years."