Unimicron acquires Subtron in a share exchange

STRATEGY:
The companies aim to finalize the deal by October 1, so that their resources can be integrated to accelerate major expansions and seize emerging opportunities.

  • By Chen Cheng-hui / Staff Reporter

IC substrate and printed circuit board maker Unmicron Technology Corp (欣興電子) plans to acquire Subtron Technology Co (旭德科技) in a bid to strengthen its competitiveness by having a broader product portfolio, better technological capabilities and larger and more integrated resources.

Subtron, which is based in Hukou Township of Hsinchu County (湖口), is a packaged system substrate supplier, with a paid-up capital of NT$2.96 billion (US$106.17 million). .

Unimicron, an Apple Inc supplier based in Guishan District of Taoyuan (龜山) with registered capital of NT$14.75 billion, plans to acquire the 67.82% shares it does not own in Subtron after its board yesterday approved a share swap deal, the company said in a Taiwan Stock Exchange filing.

Photo: Vanessa Cho, Taipei Times

Unimicron has announced its intention to issue 45.45 million common shares for Subtron shares, with a share exchange ratio of 0.219 Unimicron shares for each Subtron share.

On Monday, shares of Unmicron closed at NT$237.5 on the Taiwan Stock Exchange and Subtron traded at NT$40.64 on the Taipei Stock Exchange. Trading in both stocks was suspended yesterday ahead of the merger announcement.

The companies hope to complete the deal by Oct. 1 after securing approval from authorities and shareholders, Unmicron said, adding that they aim to integrate resources to accelerate major expansions and meet market demand.

The companies also expect to seize emerging opportunities in the electric vehicle, autonomous driving, high-speed high-frequency communications and metaverse markets through the technological development of compound semiconductor substrates, he said. .

Unimicron reported net profit of NT$8.23 billion in the first three quarters of last year, up from NT$3.41 billion a year earlier, with earnings per share (EPS) of 5. NT$6.

Consolidated revenue rose 18.97 percent year-on-year to NT$104.56 billion last year, according to company data.

Last year, Subtron’s revenue rose 24.12% year-on-year to NT$4.82 billion, while its net profit rose from NT$206.66 million to $593.86 million. NT, with an EPS of NT$2.03.

Once the deal is done, Subtron will ask the financial regulator to withdraw from the Taipei exchange, according to the filing.

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