ASE to Dispose Holdings in Subsidiaries to Wise Road Capital

Article By : ASE Technology Holding Co. Ltd

ASE will sell shares and equity interests in GAPT Holding to Beijing Wise Road.

ASE Technology Holding Co. Ltd and Beijing Wise Road Asset Management Co. Ltd have entered into a sale and purchase agreement by which ASE will sell shares and equity interests in GAPT Holding Ltd—GAPT Holding directly or indirectly holds 100% equity interests in Global Advanced Packaging Test (Hong Kong), ASE (WeiHai) Inc., Suzhou ASEN Semiconductors Co. Ltd, and ASE Advanced Semiconductor (Shanghai) Ltd) and ASE (Kunshan) Inc.—to Wise Road Capital or its designated affiliate in exchange for a cash consideration in an aggregate amount of $1.46 billion.

According to the sale and purchase agreement, ASE shall transfer the subject shares and equity interests in each target company to Wise Road Capital or its designated affiliate on the completion date. Wise Road Capital shall pay to ASE equivalent cash consideration in two parts: (1) $1.08 billion plus aggregated cash balance and minus aggregated outstanding debt balance of the target companies will be paid upon the Completion Date; and (2) $380 million on the first business day six months after the completion date. ASE expects to recognize a tax effected gain of approximately $630 million from the transaction.

Through the completion of the transaction, ASE will improve its overall competitive edge by optimizing its strategy and resource allocation in China, while further enhancing its investment in advanced technology development and expanding its leading edge capacities within Taiwan. ASE believes it can better leverage its global presence and leading-edge technology to better serve its global customer base.

 

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