Chip packaging and testing materials supplier Chang Wah Electromaterials Inc (長華電材) yesterday said it plans to fully acquire SH Asia Pacific Pte Ltd of Singapore for ￥15 billion (US$141 million) in a bid to boost its global market share.
Chang Wah said it would buy the SH Asia Pacific shares from Sumitomo Metal Mining Co Ltd of Japan, as the latter has decided to withdraw from the business which has seen slowing growth.
It also comes as the emergence of Chinese manufacturers has intensified competition in the lead frame business, the metal structures that carry signals from the chip to the motherboard.
The takeover bid is to be conducted along with the company’s semiconductor materials subsidiary Chang Wah Technology Co Ltd (長華科技), according to company statements submitted to the Taiwan Stock Exchange yesterday.
“We will enhance the companies’ competitiveness by expanding their operational scale and providing an extensive product portfolio through the deal,” Chang Wah Electromaterials said in a statement.
The deal would see Chang Wah Electromaterials and Chang Wah Technology indirectly own SH Asia Pacific’s two Chinese subsidiaries in Suzhou and Chengdu, as well as its Malaysian and Taiwanese subsidiaries, it said.
Chang Wah Electromaterials and Chang Wah Technology yesterday said they had signed a three-way agreement with SH Asia Pacific’s parent company, SH Materials Co Ltd, to acquire all the common shares of SH Asia Pacific.
Chang Wah Electromaterials is to have a 30 percent stake in SH Asia Pacific, while Chang Wah Technology would have the other 70 percent.
The companies plan to complete the deal on March 31 next year at the earliest. The acquisition is subject to regulatory approval.
Meanwhile, Sumitomo Metal Mining said it has inked a letter of intent with Taiwan’s Jih Lin Technology Co Ltd (界霖科技) to sell its three power semiconductor lead frame subsidiaries.
No financial details were disclosed.
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