Semiconductor components distributor WPG Holdings Co (大聯大投資控股) yesterday said it plans to acquire a 30 percent stake in local rival WT Microelectronics Co Ltd (文曄) for about NT$8.11 billion (US$266.58 million).
WPG plans to buy 177.11 million shares of WT Microelectronics at NT$45.8 each, representing a 26.87 percent premium compared with WT Microelectronics’ closing price of NT$36.1 yesterday.
“We see this as a financial investment because WT Microelectronics has been delivering decent returns,” WPG spokesman Cliff Yuan (袁興文) told a media briefing at the Taiwan Stock Exchange.
WPG expects the investment to pay off as WT Microelectronics has delivered an average return of 13.5 percent over the past two years, Yuan said.
The firm would not get involved in WT Microelectronics’ daily operations, Yuan said.
Wanting to create value for shareholders over the next 10 to 30 years, WPG is seeking investment targets, along with digital transformation, resource integration and financial stability, he said.
The tender offer would be a success if the transaction reaches the minimum of 29.52 million shares set by WPG, its statement said.
WPG reported a rise in net profit of 9.6 percent last quarter to NT$1.79 billion from NT$1.63 billion the previous quarter. On an annual basis, net profit edged 0.9 percent higher from NT$1.77 billion.
As of Sept. 30, WPG had NT$9.63 billion in cash and cash equivalents.
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