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Siliconware chairman spends NT$1 billion on company's shares

Siliconware chairman spends NT$1 billion on company's shares

Taipei, Sept. 24 (CNA) The chairman of Siliconware Precision Industries Co. (??) has spent more than NT$1 billion (US$30.3 million) in recent months to raise his stake in the integrated circuit packaging and testing services provider, in a bid to strengthen his management team's influence in the company, market sources said Thursday. The sources said that the move by Bough Lin (???) to raise his stake in Siliconware is especially aimed at taking on a probable increase in the influence to be exercised by Advanced Semiconductor Engineering Inc. (ASE, ???), which has completed a tender offer to buy a stake in Siliconware. On Aug. 24, ASE launched the tender offer, which went through Sept. 22, and bought a 24.99 percent stake in Siliconware to become the largest shareholder. Before the tender offer was completed, Lin had repeatedly urged Siliconware shareholders not to sell their shares to ASE amid concern that the acquisition paves the way for a hostile takeover in the future. ASE has said that it will not intervene in Siliconware's operations after the acquisition. In August alone, Lin spent about NT$200 million on an additional 5 million Siliconware shares to raise his stake in the company to 2.36 percent from 2.2 percent recorded in July, the sources said. The sources said that Lin has continued to raise his shareholding since the beginning of September and that he is estimated to have spent more than NT$1 billion in recent months to reinforce his power on the board of directors, the sources added. In addition to Lin, another director of Siliconware's board, Lin Wen-lung (???), bought 1 million shares in August, a move that was believed to further strengthen the influence of the management team against ASE. To counter ASE's tender offer, Siliconware announced on Aug. 28 that it was setting up a strategic alliance with the world's largest contract electronics maker, Hon Hai Precision Industry Co. (??), through a stock swap. If the stock swap deal goes through, Hon Hai will hold a 21.24 percent stake in Siliconware to become the latter's largest shareholder, while Siliconware will hold a 2.2 percent stake in Hon Hai. ASE's stake in Siliconware is expected to be diluted to a level below 20 percent after the stock swap, so that Hon Hai will keep its title as the largest shareholder. ASE has expressed opposition to the stock swap, while Siliconware has scheduled a special general meeting for Oct. 15 to secure approval from shareholders to allow the deal with Hon Hai to go ahead. (By Jalen Chung and Frances Huang)


Updated : 2021-06-21 22:25 GMT+08:00