IC substrate and printed circuit board maker Unimicron Technology Corp (欣興電子) plans to acquire Subtron Technology Co (旭德科技) in a bid to boost its competitiveness by having a larger product portfolio, better technology capabilities, and bigger and more integrated resources.
Subtron, which is based in Hsinchu County’s Hukou Township (湖口), is a provider of system-in-package substrates, with paid-in capital of NT$2.96 billion (US$106.17 million).
Unimicron, an Apple Inc supplier based in Taoyuan’s Guishan District (龜山) with capital of NT$14.75 billion, plans to acquire the 67.82 percent shares it does not own in Subtron after its board of directors yesterday approved a share-swap deal, the company said in a Taiwan Stock Exchange filing.
Photo: Vanessa Cho, Taipei Times
Unimicron said it plans to issue 45.45 million ordinary shares for Subtron shares, with a share swap ratio of 0.219 Unimicron shares for every Subtron share.
On Monday, Unimicron shares closed at NT$237.5 on the Taiwan Stock Exchange and Subtron traded at NT$40.64 on the Taipei Exchange, suggesting the deal would give Subtron shareholders a 26 percent premium.
Trading of the two stocks was suspended yesterday ahead of the announcement of the merger.
The firms hope to complete the deal by Oct. 1 after gaining approval from the authorities and shareholders, Unimicron said, adding that they aim to integrate resources to accelerate major expansions and satisfy market demand.
The companies also expect to seize emerging opportunities in the electric vehicle, autonomous driving, high-frequency high-speed communication and metaverse markets through technology development in compound semiconductor substrates, it said.
Unimicron reported a net profit of NT$13.22 billion last year, up 142 percent from a year earlier, with earnings per share (EPS) of NT$8.98, a record high.
Consolidated revenue increased 18.97 percent year-on-year to NT$104.56 billion last year, also a record, company data showed.
To increase the company's production capacity and meet future research needs, the board yesterday approved a proposal to increase capital spending to NT$40.41 billion this year, up from the NT$35.86 billion it had planned earlier.
Subtron’s revenue last year increased 24.12 percent annually to NT$4.82 billion, while its net profit rose to NT$593.86 million from NT$206.66 million, with EPS of NT$2.03.
After the deal is closed, Subtron would apply to the financial regulator to delist from the Taipei Exchange, the filing said.
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