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Sunday, September 27th, 2020

GlobalWafers : to be 3rd-largest silicon wafer firm on acquisition

by August 19, 2016 General

Taiwan-based GlobalWafers Co. said Thursday that the company is expected to become the third-largest silicon wafer supplier in the world after it completes a deal to acquire Singapore-headquartered SunEdison Semiconductor Ltd.GlobalWafers said that it expects the deal to be completed by the end of this year.After the acquisition, GlobalWafers is expected to take a 17 percent share of the global silicon wafer market to become the third- largest supplier in the world. Currently, GlobalWafers is among the top six silicon wafer firms in the world.Trading of GlobalWafers shares was suspended on the local over-the-counter market Thursday due to the release of the market- sensitive information. The previous day, GlobalWafers closed at NT$64.80 (US$2.06).Under the agreement, GlobalWafers will spend US$683 million, or US$12 per share, to acquire all of SunEdison`s outstanding shares, and an acquisition price represents a 44.9 percent premium of the Singapore firm`s closing price Wednesday. Currently, SunEdison shares are traded on the NASDAQ market.The acquisition deal has been unanimously approved by both GlobalWafers` and SunEdison`s boards of directors. GlobalWafers said, however, that the deal is still pending the approval of the shareholders of SunEdison Semiconductor, as well as other customary conditions, including a nod from relevant regulatory authorities and the High Court of Singapore.SunEdison has scheduled a shareholder meeting for two months from now, and the deal needs approval from 75 percent of its shareholders.Since SunEdison is based in Singapore, GlobalWafers said that it will assign its Singapore subsidiary, GWafers Singapore PTE Ltd., to complete the deal.SunEdison owns facilities in research and development, and manufacturing facilities in the U.S., Europe and Asia, and enables the next generation of high-performance semiconductor devices.After the combination, GlobalWafers` total sales could hit NT$40 billion, the company said. In the first six months of this year, GlobalWafers posted NT$7.55 billion in consolidated sales, and its earnings per share stood at NT$2.“The combined companies will bring together GlobalWafers` unparalleled operating model and market strengths with SunEdison Semiconductor`s expansive global footprint and product development capabilities,” GlobalWafers Chairwoman Doris Hsu said in a statement.GlobalWafers said that it will finance the acquisition deal partly in cash and partly through a loan committed by the Bank of Taiwan (), Hua Nan Commercial Bank (), Mega International Commercial Bank, Taipei Fubon Commercial Bank, and Taishin International Bank.(c) 2003-2016 Mehr News Agency Provided by SyndiGate Media Inc. (, source Middle East & North African Newspapers