Advanced Semiconductor Engineering Co. won its battle to buy a $1.1 billion stake in Silicon Precision Industry Co. in a rare hostile Taiwan offer. Shares of both companies fell in Taipei on Wednesday.
Investors tendered almost 1.15 billion shares in SPIL after ASE offered NT$45 per share for 779 million shares of its local competitor, ASE said Tuesday. While 36.83 percent of SPIL shares were tendered, ASE will cap its acquisition at the previously announced 24.99 percent.
The response to ASE’s bid came after SPIL urged shareholders last month to reject ASE’s offer. SPIL later announced a deal to swap shares with Hon Hai Precision Industry Co. at a lower valuation, which would give the Foxconn Technology Group unit a stake of more than 21 percent.
“We don’t think it’s a defeat,” said Byron Chiang, a spokesman for SPIL. “We wanted ASE to offer more. Their bid is too low.”
SPIL dropped 5.6 percent Wednesday in Taipei to NT$38.90, the largest decline in two months and 14 percent below the tender price. ASE lost 3.5 percent to NT$34.65 amid a 2.1 percent drop in the benchmark Taiex index.
ASE’s cash offer was 34 percent higher than the stock’s close on Aug. 21, the day it announced its bid. ASE, the world’s biggest chip packaging company, reiterated Tuesday it wouldn’t interfere with SPIL’s management.
SPIL will continue with plans to swap shares with Hon Hai, Chiang said.
ASE and SPIL face increased competition from Chinese companies including Jiangsu Changjiang Electronics Technology Co., which last year announced plans to buy Singapore-based STATS ChipPAC Ltd. Together, they would control more than half of the chip packaging market, Bloomberg Intelligence estimates.