ASE Technology Holding Co logo

ASX - ASE Technology Holding Co News Story

$4.25 0.0  0.2%

Last Trade - 17/09/20

Sector
Technology
Size
Large Cap
Market Cap £7.08bn
Enterprise Value £11.42bn
Revenue £11.61bn
Position in Universe 811th / 6371

BREAKINGVIEWS-China's chip landgrab sparks $8 bln of hasty M&A

Tue 15th December, 2015 3:31am
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Robyn Mak HONG KONG, Dec 15 (Reuters Breakingviews) - China wants to assemble a domestic semiconductor giant via foreign takeovers. So rattled rivals are rushing to secure assets, especially in Taiwan. Micron's $4.1 bln buyout of a JV partner makes sense. ASE's gatecrashing of an agreed tie-up with the Chinese looks riskier. Full view will be published shortly. CONTEXT NEWS - Taiwanese chipmaker Advanced Semiconductor Engineering (ASE) on Dec. 14 offered to buy the rest of rival Siliconware Precision Industries (SPIL). ASE, which already owns 25 percent of SPIL, offered NT$55 ($1.67) per common share for the rest - a 21 percent premium over the last closing price. The all-cash deal is valued at NT$128.6 billion. - The unsolicited offer comes after Chinese state-backed conglomerate Tsinghua Unigroup said on Dec. 11 it would buy a 25 percent stake in SPIL for the same NT$55 per share. ASE's offer is conditional on SPIL cancelling that earlier deal, and has not been approved by SPIL's board. - Separately, U.S. memory chipmaker Micron Technology agreed to buy the remaining 67 percent of shares it does not own in Taiwanese partner Inotera Memories on Dec. 14. The deal is worth $4.1 billion on an equity basis, or $3.2 billion including the target's net cash. - ASE shares rose 3.8 percent to NT$34.7 by mid morning on Dec. 15 in Taipei, while SPIL's shares rose by the 10 percent daily limit to NT$50.10. Inotera shares also rose by the maximum 10 percent, to NT$25.30. - ASE announcement: http://prn.to/1O5XTq5 - Micron announcement: http://bit.ly/1O5XPGS - Reuters: Taiwan's ASE offers to buy Siliconware Precision to deflect China rival bid urn:newsml:reuters.com:*:nL3N1433LK - Reuters: Micron Technology agrees to buy remaining interest in Inotera Memories urn:newsml:reuters.com:*:nWNAB09EXD - Reuters: China's Tsinghua Unigroup to invest $47 bln to build chip empire urn:newsml:reuters.com:*:nL3N13B29S (The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) - For previous columns by the author, Reuters customers can click on MAK/ <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS www.breakingviews.com/TOPNewsSubscription ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (On Twitter https://twitter.com/mak_robyn. Editing by Quentin Webb and Katrina Hamlin) ((robyn.mak@thomsonreuters.com;)(Reuters Messaging: robyn.mak.thomsonreuters.com@reuters.net)) Keywords: TAIWAN SEMICONDUCTORS/M&A BREAKINGVIEWS
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.