TAIPEI – Taiwan’s GlobalWafers, the world’s third-largest maker of semiconductor wafers, today said it has signed an agreement to acquire German rival Siltronic AG in a deal worth around US$4.5 billion (RM18.27 billion).
GlobalWafers, in a statement, said it will offer €125 (RM614) a share to Siltronic shareholders, a 10% premium to its closing price on November 27, the last trading day before public disclosure of the planned acquisition.
Chemical group Wacker Chemie AG, Siltronic’s largest shareholder, has agreed to sell all of its 30.8% stake to the Taiwanese company, it added.
“We believe that this transaction would be beneficial not only to each GlobalWafers and Siltronic, but also to our customers, shareholders and other stakeholders,” said GlobalWafers CEO Doris Hsu.
She reiterated that the firm could offer “a comprehensive product portfolio” to semiconductor customers worldwide and invest more in capability expansion after the acquisition.
The deal is estimated to be worth US$4.5 billion if GlobalWafers buys all of Siltronic’s outstanding shares.
Globalwafers expects the deal, which will require regulatory approval in Germany and Taiwan, to be completed in the second half of 2021.
Siltronic has said its board views the offer price “to be attractive and appropriate”, and that it could stave off any job losses in Germany until at least 2024.
A successful acquisition will help GlobalWafers surpass Japan’s two market leaders, Shin-Etsu Chemical and Sumco, to become the world No. 1 by revenue, with a market share of 32% to 35%, according to Richard Hsia, an analyst at Fubon Securities Investment Services Co, quoted by Bloomberg News.
The takeover offer is the latest in a number of semiconductor deals this year set to break the record US$122 billion in chip acquisitions in 2016, according to Bloomberg.
GlobalWafer’s shares fell as much as 8.81% in Taiwan today. Siltronic’s shares rose 1.2% to more than €128 in early trading. – AFP, December 10, 2020
