Siltronic-GlobalWafers Deal Falls Through on Lack of German Government Approval
February 01 2022 - 1:54AM
Dow Jones News
By Joshua Kirby
Siltronic AG said Tuesday a takeover offer from Taiwanese peer
GlobalWafers Co. has expired after the German government failed to
issue the relevant approvals in time.
A deadline of Jan. 31 to obtain foreign approvals for the
takeover having passed, the offer has expired, though it won't be
closed, the Munich-based chip maker said.
"A certificate of nonobjection has not been issued nor is deemed
to have been issued by the German Federal Ministry for Economic
Affairs and Climate Action. Therefore, the conditions for the
completion of the tender offer have not been fulfilled," Siltronic
said.
At the end of 2020, GlobalWafers made an all-share bid via a
Germany-based subsidiary, GlobalWafers GmbH, for Siltronic at 125
euros ($140.43) a share, later increased to EUR140 a share. At the
latter price, the bid valued Siltronic's equity at around EUR4.2
billion.
However, it had been looking increasingly unlikely the deal
would close, with Siltronic shares falling last month after the
company flagged the continuing lack of approvals from the German
government.
According to the combination agreement, Siltronic will have to
pay GlobalWafers a termination fee of EUR50 million as a result of
the failure to obtain the approvals.
For its part, GlobalWafers said last week that if the deal were
to fail, it would plan to make alternative investments, mostly
outside Europe.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
February 01, 2022 01:39 ET (06:39 GMT)
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