Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) and Siliconware Precision Industries Co (SPIL, 矽品精密) yesterday said their boards have agreed to sign a joint share exchange agreement, wrapping up negations for a NT$128.7 billion (US$3.99 billion) takeover bid proposed by ASE.
The agreement is set to expire on Dec. 31 next year, at which time it would terminate unless both companies agree to extend the deadline in writing, a joint statement said.
The companies also agreed to create a new holding company, ASE Industrial Holding Co Ltd (日月光投資控股). Terms of the agreement are mostly the same as the joint share exchange memorandum of understanding signed in May.
SPIL is to sell all of its shares to the new holding company at an adjusted price of NT$51.2 per share, after excluding a NT$3.8 per share cash dividend distribution, while ASE shareholders are to be able to swap each of their ASE shares for a half share in the new holding company.
The new holding company is to own 100 percent of the equity of both ASE and SPIL, while both firms would remain separate legal entities.
If the companies plan to maintain separate operations it might not benefit them in the long term, as overlapping research and development and engineering costs would not help improve their bottom lines, CIMB Securities Ltd Taipei-based analyst Peter Chan (詹逸群) said in a note on June 17.
The ultimate success of the deal lies in how well both sides can learn to work together “to innovate strategies, steer focus and drive execution. More challenges lie ahead,” Chan said.
Based on the agreement, the two companies are to be delisted from the Taiwan Stock Exchange and the new holding company is to debut on the local bourse and on Wall Street, the statement said.
ASE is to hold almost all of the stock in the new entity, which is to issue 3.9 billion common shares.
Anna Bhobho, a 31-year-old housewife from rural Zimbabwe, was once a silent observer in her home, excluded from financial and family decisionmaking in the deeply patriarchal society. Today, she is a driver of change in her village, thanks to an electric tricycle she owns. In many parts of rural sub-Saharan Africa, women have long been excluded from mainstream economic activities such as operating public transportation. However, three-wheelers powered by green energy are reversing that trend, offering financial opportunities and a newfound sense of importance. “My husband now looks up to me to take care of a large chunk of expenses,
SECTOR LEADER: TSMC can increase capacity by as much as 20 percent or more in the advanced node part of the foundry market by 2030, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to lead its peers in the advanced 2-nanometer process technology, despite competition from Samsung Electronics Co and Intel Corp, TrendForce Corp analyst Joanne Chiao (喬安) said. TSMC’s sophisticated products and its large production scale are expected to allow the company to continue dominating the global 2-nanometer process market this year, Chiao said. The world’s largest contract chipmaker is scheduled to begin mass production of chips made on the 2-nanometer process in its Hsinchu fab in the second half of this year. It would also hold a ceremony on Monday next week to
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
RSS