SPIL re­jects ASE takeover bid, an­nounces deal with Hon Hai


Hon Hai Pre­ci­sion In­dus­try Co. ( ) and Sil­i­con­ware Pre­ci­sion In­dus­tries Co. (SPIL, ) yesterday an­nounced a strate­gic al­liance via share swap in a bid to re­ject Ad­vanced Semi­con­duc­tor En­gi­neer­ing Inc.’s (ASE, ) hos­tile takeover of SPIL.

SPIL said it had con­cerns over ASE’s bid to ac­quire a 25-per­cent stake in SPIL, and called on SPIL share­hold­ers not to ac­cept ASE’s of­fer.

On Aug. 21, ASE re­vealed its in­ten­tion to ac­quire SPIL com­mon share and Amer­i­can De­posi­tary Re­ceipts (ADR) at the price of NT$45 per share.

Un­der the Reg­u­la­tions Gov­ern­ing Public Ten­der Of­fers for Se­cu­ri­ties of Public Com­pa­nies, two meet­ings were held by the board of SPIL and a re­view com­mit­tee sep­a­rately to de­lib­er­ate ASE’s takeover.

SPIL later con­cluded that ASE of­fered a mere 0.29- per­cent price pre­mium, con­sid­er­ing the share’s av­er­age trad­ing price of NT$44.87 over the past 90 busi­ness days.

The cash con­sid­er­a­tion of­fered by ASE is re­garded “in­ad­e­quate” from a fi­nan­cial point of view, based on the opin­ion of J.P. Mor­gan Se­cu­ri­ties, which was char­tered by SPIL to re­view ASE’s ac­qui­si­tion.

Also, based on the Ding Shuo Cer­ti­fied Public Ac­coun­tants’ re­port, the rea­son­able price range is be­tween NT$ 48.91 and NT$60.58 per share, and NT$244.55 and NT$302.0 for the ADR, the semi­con­duc­tor com­pany said.

There­fore, ASE’s of­fers of NT$45 per share and NT$225 per ADR fall be­low the rea­son­able price range, SPIL said.

SPIL also crit­i­cized AOE for launch­ing a hos­tile takeover, say­ing that ASE never com­mu­ni­cated the ten­der vance.



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Em­brac­ing with Hon Hai In­stead

Hon Hai and SPIL held a joint press con­fer­ence late Fri­day af­ter­noon to de­clare the part­ner­ship, which gives Hon Hai a 21.24-per­cent stake in SPIL to make it the largest share­holder. SPIL will own a 2.2-per­cent stake in Hon Hai af­ter the share swap.

In this deal, one Hon Hai share will be ex­changed for 2.34 SPIL shares, ac­cord­ing to SPIL Chair­man Bough Lin ( ).

The semi­con­duc­tor com­pany and con­tract man­u­fac­turer will col­lab­o­rate on sales and tech­ni­cal know-how to pro­vide ideal in­te­grated so­lu­tions, ac­cord­ing to the con­tract signed yesterday.

To meet fu­ture de­mand for smart­phones, wearable de­vices, the In­ter­net of Things and to of­fer cut­ting-edge prod­ucts, SPIL will put IC wire bond­ing and semi­con­duc­tor pack­ag­ing tech­nolo­gies on the ta­ble, while Hon Hai will of­fer SMT, flex­i­ble printed cir­cuit and mod­ule assem­bly tech­ni­cal know-how.

The two com­pa­nies will also work closely on sys­tem in pack­age (SiP) tech­nolo­gies and ex­plore op­por­tu­ni­ties in the mar­ket to­gether.


Sil­i­con­ware Pre­ci­sion In­dus­tries Co. Chair­man Bough Lin ( ), left, shakes hands with a Hon Hai Pre­ci­sion In­dus­try Co. ( ) ex­ec­u­tive to de­clare the two com­pa­nies’ strate­gic al­liance via a share swap deal, in Taipei, yesterday.

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