Siliconware Precision Industries Co Ltd (SPIL, 矽品精密) yesterday said that it would not make any new attempts to seek government approval for a NT$56.8 billion (US$1.7 billion) share sales to China’s Tsinghua Unigroup Ltd (清華紫光) before the new government takes office in May.
The world’s No. 3 chip tester and packager made the announcement amid growing uncertainty about rival Advanced Semiconductor Manufacturing Engineering Inc’s (ASE, 日月光半導體) takeover bid.
Taiwan’s competition watchdog on Wednesday decided to extend its review of the deal for the second time, by 60 days. That raises the odds for the Fair Trade Commission to block ASE’s acquisition of SPIL.
Meanwhile, ASE is facing a time constraint to buy an additional 24.71 percent of SPIL shares via a second tender offer before the March 17 deadline. ASE had requested to extend the Feb. 16 deadline.
The commission’s decision grants a brief relief for SPIL in the intensive ownership battle with ASE. ASE obtained 24.99 percent of SPIL shares through a tender offer in October last year.
“We respect the government’s decision,” SPIL co-founder and president Tsai Chi-wen (蔡祺文) told a news conference yesterday. “We cannot do anything before the government changes it mind.”
Legislators have requested that the commission tighten its review standards over the NT$56.8 billion investment plan by Tsinghua Unigroup for a 25 percent stake in SPIL. The commission is restricted from approving the deal after reporting to legislators.
“We will focus on March 17. It is a crucial date [for SPIL]. We will not talk about it [the share sales to Tsinghua Unigroup] before the new government takes office,” SPIL spokesman Mike Ma (馬光華) told reporters.
President-elect and Democratic Progressive Party Chairperson Tsai Ing-wen (蔡英文) is considered to be more conservative about relaxing trade ties with China than outgoing president Ma Ying-jeou (馬英九). Tsai is scheduled to swear in as president on May 20.
Tsai said that SPIL is willing to form a partnership with ASE, but a hostile takeover would jeopardize the interests of company employees, shareholders and the industry’s competitiveness.
SPIL has attempted to fend off ASE’s acquisition attempts by selling shares to Hon Hai Precision Industry Co (鴻海精密) and Tsinghua Unigroup. Shareholders have voted against a share-swap deal with Hon Hai.
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