ASE/SPIL/HonHai -  Would you bring a knife to a gun fight?

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

Siliconware Precision Inds / Event-Driven

On 21 August 2015, Advanced Semiconductor Engineering ("2311 TT") announced plans to commence tender offers for the common shares and American Depository Shares ("ADSs") of Siliconware Precision Industries Co. Ltd. ("2325 TT") at TWD 45 / share and TWD 225 / ADS respectively.<ul><li>The transaction is valued at ~TWD 35 Bn (USD 1.08 Bn)</li><li>1 ADS = 5 common shares</li><li>Taiwan offer commenced 0900hrs (Taiwan time) on 24 August 2015 and is set to expire at 1530hrs (Taiwan time) on 22 September 2015; the US offer commenced 0001hrs (New York time) on 24 August 2015 and will expire at 1200hrs (New York time) on 22 September 2015</li></ul>On Friday, 28 August 2015, SPIL responded. They&nbsp;recommended shareholders REJECT ASE's Tender Offer and announced that they will be entering into a share exchange with Hon Hai that would lead to Hon Hai owning 841m shares (21.2% of SPIL) and SPIL owning 359m shares (2.2%) in Hon Hai.In order to complete the share exchange, SPIL shareholders must approve the issuance of new shares during the coming EGM to be held on the 15 October 2015This is dilutive to shareholders of SPIL, and to ASE if they were to proceed to buy&nbsp;25% of SPIL.&nbsp;In spite of the announcement, ASE has affirmed that they are still proceeding with their partial offer. This turn of events creates a very interesting situation..... more on this event&nbsp;below the fold

On 21 August 2015, Advanced Semiconductor Engineering ("2311 TT") announced plans to commence tender offers for the common shares and American Depository Shares ("ADSs") of Siliconware Precision Industries Co. Ltd. ("2325 TT") at TWD 45 / share and TWD 225 / ADS respectively.The transaction is valued at ~TWD 35 Bn (USD 1.08 Bn)1 ADS = 5 common sharesTaiwan offer commenced 0900hrs (Taiwan time) on 24 August 2015 and is set to expire at 1530hrs (Taiwan time) on 22 September 2015; the US offer commenced 0001hrs (New York time) on 24 August 2015 and will expire at 1200hrs (New York time) on 22 September 2015On Friday, 28 August 2015, SPIL responded. They&nbsp;recommended shareholders REJECT ASE's Tender Offer and announced that they will be entering into a share exchange with Hon Hai that would lead to Hon Hai owning 841m shares (21.2% of SPIL) and SPIL owning 359m shares (2.2%) in Hon Hai.In order to complete the share exchange, SPIL shareholders must approve the issuance of new shares during the coming EGM to be held on the 15 October 2015This is dilutive to shareholders of SPIL, and to ASE if they were to proceed to buy&nbsp;25% of SPIL.&nbsp;In spite of the announcement, ASE has affirmed that they are still proceeding with their partial offer. This turn of events creates a very interesting situation..... more on this event&nbsp;below the fold

Special Sits - Partial offer turns hostile