ASE seeking to buy up to 25% stake in SPIL
Semiconductor assembly and testtest is test company Advanced Semiconductor Engineering ASE is not seeking involvement in the operation of Siliconware Precision SPIL despite its bid to take up a major stake in the competitor, according to ASE CFO Joseph Tung.
ASE’s bid for SPIL shares should not be regarded as a “hostile takeover,” said Tung responding to criticisms for the company’s plan to buy an up to 25% stake in SPIL. Through its investment in SPIL, ASE is seeking cooperation rather than competition, Tung indicated.”It is purely a financial investment, and ASE will not intervene in SPIL’s operations,” Tung said. ASE will be SPIL’s largest shareholder if its tender offer to acquire an up to 25% stake in the company completes.Regarding ASE’s bid, SPIL indicated it had not been aware of ASE’s move beforehand. “SPIL will take all actions in accordance with the applicable laws upon receipt of the public tender offer prospectus, and will provide a formal response, together with recommendation and explanations, to the company’s shareholders within seven days,” according to a company filing with the Taiwan Stock Exchange TSE.ASE on August 21 disclosed plans to buy up to 779 million common shares of SPIL, which will include common shares represented by ADSs. ASE will offer NT$45 US$1.38 per common share of SPIL and NT$225 per ADS payable in the equivalent amount of US dollars.