• Directory of Taiwan

Siliconware promises to respond to ASE's tender offer within 10 days

Siliconware promises to respond to ASE's tender offer within 10 days

Taipei, Dec. 30 (CNA) Siliconware Precision Industries Co., Taiwan's second largest integrated circuit packaging and testing services provider, said Wednesday that it will respond within 10 days to a tender offer proposed by Advanced Semiconductor Engineering Inc. for an additional stake.

Siliconware, which last week described ASE's tender offer as "hostile," said in a filing with the Taiwan Stock Exchange that it had received a prospectus on the tender offer and related documents from ASE, and will hold a screening meeting within 10 days and respond to the buy-out offer before Jan. 9 next year.

ASE is the largest IC packaging and testing firm in the world, ahead of U.S.-based Amkor Technology Inc. and Siliconware.

Since Monday, ASE has been buying Siliconware's common shares and American depositary receipts on the open market through the tender offer proposed on Dec. 22 in a bid to obtain a stake of up to 24.71 percent at a price of NT$55 (US$1.67) per share.

It was ASE's second tender offer to Siliconware since early October, when ASE offered to buy a 25 percent stake in Siliconware at NT$45 per share.

On Dec. 14, ASE proposed acquiring the remaining 75 percent stake in Siliconware.

The Dec. 14 proposal came three days after China's Tsinghua Unigroup, which is backed by the Chinese government, proposed to buy a 25 percent stake in Siliconware through a private placement.

On Dec. 28, Siliconware said it had decided to assess ASE's Dec. 14 acquisition proposal and put the tie-up with Tsinghua Unigroup on hold, while requesting ASE to suspend the second tender offer.

However, ASE decided to let the tender offer proceed as planned, ignoring Siliconware's plan to evaluate the Dec. 14 proposal. The second tender is scheduled to last until Feb. 16, 2016.

ASE said it aims to bring Siliconware completely under its orporate umbrella and delist Siliconware shares on the equity market.

Siliconware said its Chairman Bough Lin holds 64.67 million shares in the company or about a 2 percent stake, its Vice Chairman Tsai Chi-wen a 0.79 percent stake, and one of its directors Lin Wen-lung a 0.42 percent stake. According to market estimates, Siliconware executives, including Lin, currently hold an aggregate 18 percent stake in the company.

Shares of Siliconware closed unchanged at NT$51.50 on the local main board Wednesday, while shares of ASE ended down 2.0 percent at NT$37.15. (By Jalen Chung and Frances Huang)

Updated : 2021-05-08 10:29 GMT+08:00