Siliconware Precision Industries Co (SPIL, 矽品精密) yesterday said it has terminated an agreement to sell a 25 percent stake to China’s Tsinghua Unigroup Inc (清華紫光) ahead of potential policy changes by the incoming government.
“After considering the subjective and objective factors of the company and Unigroup, the company’s board of directors resolved to terminate the private placement,” the world’s No. 3 chip tester and packager said in a statement.
The firms decided to end the agreements regarding share subscription and strategic alliance, the statement said.
Photo: CNA
“Given the current situation, it is not proper to proceed with the pact. We decided to temporarily withdraw this deal to cope with the new government’s policy [about collaboration with China],” SPIL chairman Bough Lin (林文伯) told an investors’ conference.
When asked if SPIL would continue to seek new partnerships, Lin said: “There are many possibilities.”
SPIL reached an agreement with Tsinghua Unigroup in December last year to sell 3.5 billion new common shares for NT$19.4 billion (US$601 million at current exchange rates) in a bid to fend off a takeover bid by Advanced Semiconductor Engineering Inc (ASE, 日月光半導體).
Last month, the Fair Trade Commission did not come to a decision over ASE’s second takeover bid for SPIL because of concerns about competition.
The Investment Commission yesterday said it would begin its preliminary review of Tsinghua Unigroup’s planned investments in Powertech Technology Inc (力成) and ChipMOS Technologies Inc (南茂), given the SPIL board’s decision.
“We will still review the two applications as one case. The possibility of approving both applications is not going to be higher because of SPIL’s latest decision… It will depend on the actual review,” commission Executive Secretary Emile Chang (張銘斌) said by telephone.
Once the commission ensures that the documentation for the two applications is correct, it will send the applications to the Mainland Affairs Council, the Financial Supervisory Commission, the National Security Bureau and the Industrial Development Bureau for review, Chang said.
After collating the different agencies’ comments, the commission is to report to the legislature’s Economics Committee before holding a final review meeting to make a decision, he added.
Given the sensitivity of the issue, Chang said there was no time frame or deadline for a final decision.
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