Takeover to make GlobalWafers third-largest silicon wafer maker
August 19, 2016, 12:21 am TWN
TAIPEI, Taiwan — Taiwan-based GlobalWafers Co. (環球晶圓) 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 expected 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 shares 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 would assign its Singapore subsidiary, GWafers Singapore PTE Ltd., to complete the
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 (徐秀蘭) said in a statement.
GlobalWafers said that it would finance the acquisition deal partly in cash and partly through a loan committed by the Bank of Taiwan (台灣銀行), Hua Nan Commercial Bank (華南商銀), Mega International Commercial Bank (兆豐銀), Taipei Fubon Commercial Bank (富邦銀) and Taishin International Bank (台新銀).
GlobalWafers Co. (環球晶圓) Chairwoman Doris Hsu (徐秀蘭) speaks at a press conference after the firm’s board members decided to acquire the Singapore-headquartered SunEdison Semiconductor Ltd. The Taiwan-based company is expected to become the third-largest silicon wafer supplier in the world after it completes the deal. (CNA)