Multinational chemical company Royal DSM NV is seeking a 51 percent stake in Taiwan’s AGI Corp (新力美) through a private placement and a public tender offer, expanding its footprint in the ultraviolet (UV) paint and ink system markets.
With the acquisition of a controlling stake in the Neihu (內湖), Taipei City-based AGI, which produces UV curable resins and other products, DSM aims to strengthen its UV technology platform, the Dutch company said in a statement.
“This expansion in UV paint and ink system markets will allow DSM Resins to realize its ambition to become the global leader in sustainable and innovative resins,” DSM Resins president Dimitri de Vreeze said in the statement.
UV paint and ink systems have a low eco-footprint and operational costs. AGI’s UV curing chemicals and other plastics additives are used in coatings for paper, wood, plastic and various graphic arts applications.
The share purchase will cost DSM about 48 million euros (US$63.4 million) and requires the approval of AGI shareholders and regulatory agencies, the statement said.
AGI said in a stock exchange filing yesterday that a wholly owned DSM subsidiary would buy 6.35 million new common shares of AGI at NT$40 per share through a private placement and buy another 29.29 million AGI shares on the open market with an offer of NT$57 per share.
Meanwhile, a group of shareholders owning about 16.4 percent of AGI shares have agreed to tender their shares to DSM, the Dutch company said.
“The tender offer and the private placement are mutually conditional upon each other,” AGI deputy general manager Huang Ke-ming (黃克明) said. “However, the deal could be terminated within six months if it fails to obtain shareholders’ and regulatory approvals or to meet certain conditions.”
The two companies expect the public tender offer to begin at the end of the first quarter next year following the private placement, and hope to close the deal in the second quarter.
The Taiwanese company, whose shares trade on the emerging stock market of the GRETAI Securities Market, reported NT$86 million (US$2.85 million) in profit in the first half of the year on revenues of NT$1.98 billion. It made NT$403 million in profit last year on revenues of NT$3.52 billion.
The stock closed at NT$50.80 yesterday before DSM’s share purchase announcement.
ELECTRIC FARMLAND: TSMC’s proposal to clear 230 hectares of reforested land for what would become Taiwan’s largest photovoltaic solar farm has generated concerns New rules curbing solar farms built on agricultural land sparked fierce debate at a packed public hearing at the Legislative Yuan yesterday, with industry representatives saying that the new restrictions would endanger President Tsai Ing-wen’s (蔡英文) green energy goals, while agricultural officials emphasized the importance of protecting farmers and the environment. The Tsai administration has set a target to generate 20 percent of the nation’s power from renewable sources by 2025, by which time it also aims to install 20 gigawatts (GW) of solar power, including 6GW from rooftop solar systems and 14GW from ground-mounted solar farms. Although rooftop solar systems are
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted monthly revenue that suggested second-quarter sales surpassed analysts’ estimates, underscoring how its technological lead is helping the chipmaker weather the COVID-19 pandemic and US sanctions on its second-biggest customer Huawei Technologies Co (華為). Apple Inc’s main iPhone chipmaker posted sales of NT$120.88 billion (US$4.08 billion) for last month, up 40.8 percent year-on-year and bringing its revenue for the second quarter to NT$310.7 billion, beating the NT$308.8 billion analysts expected on average. TSMC, a barometer for the industry thanks to its heft in the global supply chain, had previously lowered its revenue outlook for this
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
BIODEGRADABLE POLYMER: The bank said that its iPass credit card, the first such card issued by a foreign bank, gives it access to stores that do not accept its credit cards DBS Bank Taiwan (星展台灣) yesterday launched its first co-branded credit card with iPass Corp (一卡通票證), and said it expects its credit card business to fully recover in the second half of this year. The new “DBS eco card” is made of polylactic acid — a bio-based biodegradable polymer that can be produced from renewable resources — and is the bank’s first credit card to have the iPass electronic payment function, it said. The partnership would give the bank new business momentum, DBS Bank Taiwan general manager Lim Him-chuan (林鑫川) told a news conference in Taipei. That is because some stores and supermarkets in