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Share price of SPIL surges on news of ASE offer

Share price of SPIL surges on news of ASE offer

The share price of Taiwan's second-largest IC packaging and testing provider, Siliconware Precision Industries Co. (SPIL), soared at the opening of trading Tuesday, a day after its main local rival offered to buy it out.

SPIL opened 10 percent higher, the maximum daily increase allowed on Taiwan's stock exchange, at NT$50.1 per share and remained at that level to the close of the session.

A day earlier, Advanced Semiconductor Engineering Inc. (ASE), Taiwan's largest IC packager and tester, announced it had submitted a proposal to SPIL's board to buy the remaining 75 percent stake in SPIL it does not own at a price of NT$55 per share, which would make the deal worth about NT$131.3 billion.

ASE had already invested NT$35.2 billion to buy 25 percent of SPIL shares at about NT$45 per share through a tender offer completed on Oct. 1.

ASE made its offer three days after SPIL signed an agreement with China's Tsinghua Unigroup to sell a 24.9 percent stake to the Chinese firm. If the deal with the Tsinghua Unigroup went through, ASE's stake in SPIL would be diluted to about 18.7 percent.

In its Monday announcement, ASE promised to keep all board members and maintain the salaries and related fringe benefits of the current management team and workers.

But the proposal also contains a clause that requires SPIL to terminate or revoke its agreement with Tsinghua Unigroup.

The share price of ASE also rose in trading Tuesday, gaining 2.54 percent to close at NT$34.25, off a high of NT$35.40 shortly after trading began. DRAM chip makers also saw their share prices surge on news that Inotera Memories Inc., a joint venture between Nanya Technology Corporation, U.S.-based Micron Technology Inc. and Micron Memory Taiwan, will be bought out by Micron Memory Taiwan.

The shares of both Inotera and Nanya shot up by the maximum 10 percent to NT$25.30 and NT$42.50, respectively, when trading opened Tuesday and stayed there the rest of the session.

Micron Memory Taiwan now holds a 33 percent stake in Inotera and will purchase the remaining 67 percent in a deal worth an estimated NT$130 billion.

Inotera's board announced Monday that it has signed a binding framework agreement under which Micron Memory Taiwan will purchase the outstanding shares of Inotera at a price of NT$30 per share.

If the deal were to go through, Inotera would become a 100 percent subsidiary of Micron and be delisted.

Inotera predicted that the deal will be completed in the second or third quarter of next year. (By Jalen Chung and Lilian Wu)


Updated : 2021-09-24 00:05 GMT+08:00