Sat, Dec 14, 2019 - Page 12 News List

Nanya Tech to raise its stake in affiliate FATC

By Lisa Wang  /  Staff reporter

DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday said that it plans to spend up to NT$2.05 billion (US$67.62 million) to boost its shareholding in Formosa Advanced Technology Corp (FATC, 福懋科技) to 32 percent to enhance their strategic partnership.

The Taishan District (泰山), New Taipei City-based company plans to buy as many as 57.49 million FATC shares at NT$35.65 apiece via block transaction, it said in a company statement.

It currently has a 19 percent stake in the memory chip testing and packaging services provider and would become its biggest shareholder following the transaction.

About 60 percent of its chips are tested and packaged at FATC fabs, Nanya Technology said.

“FATC has been a major partner of Nanya Technology in DRAM packaging and testing over the past few years,” Nanya Technology president Lee Pei-ing (李培瑛) said in the statement.

Nanya Technology plans to boost its stake in FATC to deepen their strategic collaboration “in advanced product engineering, packaging and testing; to improve its overall operating performance; and to enhance its market competitiveness,” Lee said.

Nan Ya Printed Circuit Board Corp (南亞電路板) yesterday also announced that its board of directors had approved plans to spend up to NT$470 million to purchase 13.27 million FATC shares.

That would represent a stake of 3 percent in FATC.

“The acquisition of FATC shares would strengthen cooperation in the ongoing development of IC substrates and circuit boards, and improve operating performance in the future,” Nan Ya PCB president Tang Ann-de (湯安得) said.

FATC parent Formosa Taffeta Co (福懋興業) said it plans to sell a total of 70.76 million shares at NT$35.65 per share to Nanya Technology and Nan Ya Printed Circuit Board to rejuvenate its assets, it said in a filing with the Taiwan Stock Exchange.

Formosa Taffeta expects to post gains of NT$3 billion from the share disposal.

Nanya Technology, FATC and Formosa Taffeta are members of the Formosa Plastics Group (台塑集團).

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