Beijing-backed Tsinghua stake plan approved by Powertech shareholders

Powertech Technology

15/01/2016 05:36

HSINCHU, Taiwan, Jan 15 (Reuters) - Beijing-backed Tsinghua 
Unigroup's plan to buy 25 percent of  Powertech Technology Inc 
 6239.TW  was approved by the Taiwanese firm's shareholders on 
Friday - one of three deals the frontrunner in the island's 
upcoming elections has called a "huge threat" to its chip 
industry. 
     The approval, which was expected, comes on the eve of 
national elections that are likely to usher into power the 
independence-leaning Democratic Progressive Party (DPP). 
     The plan still has to win regulatory approval and a victory 
by the DPP's candidate Tsai Ing-wen could see Chinese 
investments coming under more scrutiny in future.  
     While Powertech hopes the $600 million deal will help it 
gain traction in the all-important China market, Tsai is 
concerned Tsinghua would have too much control in Taiwan's chip 
industry.  urn:newsml:reuters.com:*:nL3N1431FD     
     Tsinghua is planning three investments worth $2.6 billion 
in Taiwan's semiconductor sector. 
     
   
 
 (Reporting by J.R. Wu; Editing by Edwina Gibbs) 
 ((jr.wu@thomsonreuters.com; +886 2 2500 4881; Reuters 
Messaging: jr.wu.thomsonreuters.com@reuters.net)) 
 
Keywords: POWERTECH TECH M&A/TSINGHUA UNIGROUP