Taiwanese IC packaging and testing company Advanced Semiconductor Engineering (ASE) announced Aug. 21 that it plans to purchase 25 percent common shares of rival Siliconware Precision Industries Co. (SPIL) from Aug. 24, raising concerns that ASE was planning on a hostile takeover.
SPIL responded on the evening of Aug. 21 and said the company was not aware of ASE’s decision in advance to purchase its common shares and depositary receipts (ADRs). SPIL said it will take appropriate actions following the receipt of the public tender offer prospectus and will make a formal response as well as communicate with shareholders within seven days.
According to ASE’s announcement, the company will buy SPIL’s common shares for NT$45 (US$1.37) apiece from Aug. 24 to Sept. 22. During the same period, it will also purchase SPIL’s ADRs for NT$225 apiece. ASE plans to buy some 779 million shares of SPIL, around a 25 percent stake, for NT$35 billion.
ASE said that with the rising competition in the semiconductor industry, its acquisition in SPIL’s stake is meant to increase cooperation with SPIL. ASE said the acquisition is purely a financial investment and that it will not intervene in SPIL’s operations.
SPIL was reportedly not aware of ASE’s acquisition before the announcement, prompting some industry observers to voice concern for a hostile takeover by ASE.