Chipbond Technology Corp (頎邦科技), Taiwan’s largest liquid-crystal-display (LCD) driver chip packaging and testing firm, said yesterday it was taking over smaller rival International Semiconductor Technology Ltd (飛信半導體), a deal that will turn Chipbond into the world’s largest LCD driver chip packaging and testing firm.
Chipbond will swap one share for every 1.8 shares in International Semiconductor Technology in a deal expected to close next July, both firms said in a filing to the Taiwan Stock Exchange.
“The merger will lower production costs and increase our scale of operations and competitiveness,” the statement said. “The synergy will consolidate production facilities and clientele of both sides … which will benefit shareholders.”
Chipbond will issue 224.66 million new common shares to International Semiconductor Technology’s shareholders valued at NT$6.22 billion (US$197.8 million) — a 4 percent premium to the latter’s closing price of NT$14.80.
In 2006, Chipbond merged with WSE Corp (華暘電子) to enhance its chip on glass offerings, a year after it had merged with gold bumping service provider Aptos Technology Inc (群豐科技).
Chipbond’s largest shareholder is United Microelectronics Corp (聯電) with a 4.02 percent stake, while Compal Electronics Inc (仁寶電腦), the world’s top notebook contract maker in terms of volumes, holds the bigest stake in International Semiconductor Technology with 23.95 percent.
Chipbond and International Semiconductor Technology returned to profitability in the third quarter, after being hit by the financial crisis.
Chipbond’s sales in the third quarter grew 43.9 percent from a year earlier to NT$1.88 billion, reversing a 12 percent loss in second quarter and 59.2 percent loss in the first.
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