Thu, Oct 06, 2016 - Page 12 News List

Inotera board to meet on Micron Tech acquisition

WHOLLY OWNED SUBSIDIARY:The chipmaker expects its board to approve the US firm’s proposal to acquire the remaining 67 percent of shares that it does not own

By Lisa Wang  /  Staff reporter

DRAM chipmaker Inotera Memories Inc (華亞科技) yesterday said it is to hold a board meeting on Tuesday to approve a merger with Micron Technology Inc.

The NT$130 billion (US$4.14 billion) deal is expected to be reached in the first half of December, Inotera said in a filing with the Taiwan Stock Exchange.

The US suitor originally planned to wrap up the deal in the middle of July.

Micron, which already owns a 33 percent stake in Inotera, proposed in December last year to acquire the remaining 67 percent of the DRAM manufacturing subsidiary from Nanya Technology Corp (南亞科技) and other members of Formosa Plastics Group (台塑集團) at NT$30 per share.

Fears mounted that the deal would founder after Micron postponed it in a statement released in early June without giving a reason. Inotera shares fell to NT$23.25 on June 15 from NT$29.40 at the beginning of that month.

Inotera shares rose 4.28 percent to end at NT$29.25 yesterday, outperforming the TAIEX, which fell 0.17 percent. Nanya shares rose 0.75 percent to NT$40.30.

Investors said that there was concern the delay was because Micron wanted to lower the acquisition price.

Inotera yesterday said the price remained unchanged at NT$30, but declined to disclose any reason for the postponement by Micron, saying it has signed a non-disclosure agreement.

After the acquisition, Inotera will become a wholly owned subsidiary of Micron Semiconductor Taiwan Co (台灣美光), a subsidiary of Micron.

Nanya expects to book NT$19.9 billion from selling its 24.2 percent stake in Inotera.

As part of the deal, Nanya could subscribe to an unspecified amount of Micron shares or convertible bonds or cash. The deal also includes the transfer of next-generation 20-nanometer technology from Micron.

Additional reporting by CNA

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