ASE announces second 24% takeover bid of SPIL

By Stephanie Chao, The China Post

TAIPEI, Taiwan — Advanced Semiconductor Engineering Co. (ASE, 日月光半導體) once again announced an offer to purchase 24.71 percent of Siliconware Precision Industries Co. (SPIL, 矽品) on Tuesday. ASE, Taiwan’s largest IC packager and tester, emphasized that it will buy around 24.71 percent of SPIL’s shares — an investment that totals NT$42.3 billion — at a price of NT$55 per share. If the deal goes through, ASE would hold 49.71 percent of SPIL’s shares. According to ASE, the acquisition will take place from 9 a.m. Taiwan time on Dec. 29 until 3:30 p.m. on Feb. 16, 2016. In the U.S., it will take place from 12 a.m. Eastern Standard Time on Dec. 29 to 1:30 a.m. on Feb. 16, 2016.

ASE’s proposal last week to buy the rest of SPIL’s shares received a cold response from SPIL earlier this week, which stated that it would consider the offer during its board of directors meeting on Dec. 28, local media reported.

ASE Chief Financial Officer Joseph Tung (董宏思) stated that after it wraps up its tender offer, the second stage process of acquiring SPIL shares and gaining a total of 49.71 percent of shares would help in the firm’s plans to fully take control of the company’s shares.

ASE’s second tender offer was an attempt to block SPIL from conducting future strategic alliances via share-swap tactics with enterprises such as Hon Hai Precision Industry Co. (鴻海) and Tsinghua Unigroup (紫光), which would in turn, lower ASE’s majority stake in SPIL, ASE officials stated.

A similar takeover bid from ASE had been announced earlier this year in August, yet it was rejected by SPIL, who in turn teamed up with Hon Hai under a share-swap alliance.

ASE’s attempt was also a response to the recent acquisition attempts by Tsinghua Unigroup, which announced plans to invest over 100 billion New Taiwan dollars to buy shares in Taiwan’s three largest IC packager and tester companies — Powertech Technology Inc (力成科技), SPIL and ChipMos Technologies Ltd. (ChipMos, 南茂科技).

According to market sources, the possibility of SPIL refusing the offer a second time remains quite high, and will likely continue paving the way for Tsinghua Unigroup’s takeover bid.

Local media reported that sources at ASE still maintain an optimistic view about SPIL agreeing to the takeover, and the company has vowed to uphold its promise to not lay off any employees as well as keep SPIL’s high-ranking officials, should the takeover bid come though.