Advanced Semiconductor Engnrng Inc (ADR)(NYSE:ASX) and Siliconware Precision Industries (ADR)(NASDAQ:SPIL) reported that both firms intend to establish ASE Industrial Holding Co., Ltd. Following the announcement, the two companies submitted applications to antitrust authorities in distinct jurisdictions in connection with the intended deal.
The details
Siliconware Precision and Advanced Semiconductor obtained nods from the U.S. Federal Trade Commission and the Taiwan Fair Trade Commission on May 15, 2017 and November 16, 2016, respectively. Last week, the Anti-Monopoly Bureau under the MOFCOM reported that it has conditionally permitted the proposed deal. SPIL and ASE highly appreciate the help that they have obtained from cross-strait and all pertinent governmental authorities during the review procedure for this deal.
Since SPIL and ASE have now received all required antitrust nods for the deal, ASE will immediately advance with the establishment of HoldCo. It is anticipated that an extraordinary general meeting will be set up in February 2018 and the formation of HoldCo will be completed by the close of May 2018. This timeline, however, is dependent on the review advancement of competent authorities.
The combination of Siliconware Precision and Advanced Semiconductor in the means of a joint share exchange could support healthy competition, enhance R&D intensity and offer customized and high-quality services to all consumers. More notably, the Share Exchange could contribute to the advancement of technical support for the development of the next-generation digital period.
While the Share Exchange carries promising significance for Taiwan and assists the advancement of the semiconductor packaging and testing know-how in the PRC and across the globe, the two companies are aware of the fact that specific authorities and industry players in the PRC may have issues over the prospective restrictive effects of the Share Exchange. In attempt to lower such concerns, Siliconware Precision and Advanced Semiconductor submitted a remedial proposal to MOFCOM, which comprised the firms’ commitments to maintain distinct operations for a confined period.
