Chipbond Technology Corp (頎邦) yesterday said it plans to acquire about a 31 percent stake in Orient Semiconductor Electronics Ltd (華泰電子) in a cash-and-share deal, aiming to make inroads into flash memory-chip packaging.
Chipbond said the strategic alliance would open the door for the company to enter the flash memorychip packaging and testing market, which is a new business for the Hsinchu-based company. Chipbond primarily provides testing and packaging services for driver integrated circuits that are used in flat panels.
BUSINESS OPPORTUNITY
Photo: CNA
“Except for flash memory chips, we also saw a lot of new businesses that require the technologies of Chipbond or Oriental Semiconductor,” Chipbond chairman Wu Fei-jain (吳非艱) told a media briefing at the Taiwan Stock Exchange yesterday.
Orient Semiconductor’s existing shareholders, including flash memory controller supplier Phison Electronics Corp (群聯電子) and memory module maker Kingston Solutions Inc (金士頓科技), are also potential clients for the new venture, Wu said.
The partnership between the two firms would create a win-win situation as Chipbond’s customers, products and client portfolios are complementary to those of Oriental Semiconductor, Wu said.
He expects the synergy to take place in the second half of next year.
BIG SPENDING
Chipbond plans to spend NT$820.4 million (US$28.31 million) on buying 12.71 percent of Orient Semiconductor shares from the manufacturer’s mayor shareholders.
Each share is priced at NT$11.59, representing a discount of 1.78 percent compared with Oriental Semiconductor’s closing price of NT$11.8 yesterday.
It also plans to subscribe to 300 million special shares to be issued by Oriental Semiconductor, Chipbond said.
Oriental Semiconductor provides manufacturing services and chip packaging services for flash memory chip makers and flash memory controller suppliers.
SMOOTH DEAL
Wu said that the talks went smoothly and were wrapped up within just two months.
Oriental Semiconductor said the deal would help significantly alleviate its financial burden.
The company lost NT$266 million in the first half of this year, or losses per share of NT$0.48.
Chipbond earned NT$1.63 billion, or NT$2.5 per share, in net profit during the first half of this year.
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