Silicon wafer giant Universal Crystal (6488-TW) announced today (1) that the public acquisition of Siltronic (Siltronic) failed to obtain approval from the German government before the January 31 trading deadline. Shichuang should be paid 50 millionEUR (approximatelyNew Taiwan Dollar 1.56 billion), but Global Crystal said that relative to the current good financial situation, the impact on the company is limited.
Global Crystal has previously obtained the approval of other required national authorities, and the German government has approved the final acquisition conditions required for this acquisition. Global Crystal said that during the review process, extremely long-term compensation measures and commitments were proposed to the German government, and it has repeatedly expressed its willingness to discuss alternatives with the German government.
Xu Xiulan, chairman of Universal Crystal, said that despite the efforts of Universal Crystal to reach a mutually agreeable solution, coupled with its long and successful history in Europe, it is very regrettable for this result. Will continue to work closely with European clients, many of whom supported this acquisition. The decision of the German government not to give a conclusion to the acquisition will be analyzed, and the impact of this decision on future investment strategies will be considered.
Global Crystal emphasized that the failure to successfully complete the acquisition will not affect the company’s business activities such as order taking. Europe is still an important market, and its commitment to European customers and employees remains unchanged.
The German government had a 14-month review period up to the trade deadline. Germany’s Federal Ministry for Economic Affairs and Climate Action on December 7 last year extended the review period beyond the deadline for transactions that BaFin, Germany’s Federal Financial Supervisory Authority, requires approval from all authorities. Therefore, Global Wafer’s public acquisition of Shichuang and related contracts have not been completed and will lapse.
Global Crystal pointed out that the 13.67% stake in Shichuang acquired in the market can be freely disposed of and has no holding period limit. The 56.6% shares of Shichuang that should be sold during the public acquisition still belong to the original shareholders and are expected to be converted into general tradable ordinary shares immediately on February 8 this year. Universal Crystal has no obligation to perform the contract, and will announce the original acquisition on February 6. Alternative uses of funds.
