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ASE, SPIL shareholders approve merger deal

2018/02/12 17:39:37

Taipei, Feb. 12 (CNA) Shareholders of Advanced Semiconductor Engineering Inc. (ASE) and Siliconware Precision Industries Co. (SPIL), the top two integrated circuit packaging and testing services providers in Taiwan, have approved a merger deal between the two companies.

ASE and SPIL held extraordinary shareholder meetings Monday for shareholders to vote on the merger proposal, in which the two will set up a holding company to bring the two IC firms under one corporate umbrella.

In May 2016, ASE and SPIL announced that they planned to form a holding company that will own 100 percent stakes in both of the two companies, and that the two will remain independent from each other, although their operations will continue under the same roof of the holding company.

Under the deal, ASE will use one common share in exchange for 0.5 shares of the new company, while shareholders of SPIL will receive NT$51.2 (US$1.79) in cash per share for the stakes they hold from ASE.

The new holding company will be called ASE Industrial Holding Co. following the merger.

Speaking to the press after his company's shareholder meeting, SPIL Chairman Bough Lin (林文伯) said the move by ASE to buy into SPIL's share price shows that the suitor is been impressed by SPIL's growth into the second-largest IC packaging and testing firm in Taiwan in the past three decades.

In addition, Lin said, ASE Chairman Jason Chang (張虔生) has high ambitions to allow SPIL's employees more opportunity to develop.

After the merger, ASE and SPIL will retain their management teams and employees but will grow together.

The shareholder meetings of the two companies were scheduled after the merger deal secured regulatory approval from China's Ministry of Commerce in late November, which cleared the way for the merger.

Before China's approval, the deal obtained a greenlight from Taiwan's Fair Trade Commission and the U.S. Federal Trade Commission in November 2016 and May 2017, respectively.

Meanwhile, a board meeting of SPIL has agreed with a tentative timeframe under which shares of the company will be delisted from the Taiwan Stock Exchange and the NASDAQ April 17, while the new company is expected to list its shares April 30.

On Monday, shares of ASE and SPIL gained 1.58 percent and 0.20 percent, respectively, to close at NT$38.50 and NT$50.30 on the local main board.

(By Chung Jung-feng and Frances Huang)