Taiwan's GlobalWafers Fails to Get German Nod for Siltronic Deal
01 February 2022 - 5:40PM
Dow Jones News
By Yifan Wang
GlobalWafers Co. failed to gain Germany's regulatory approval in
time for its bid to take over German wafer manufacturer Siltronic
AG, days after the Taiwan chip maker said the deal could still go
through.
The Taiwanese company will pay a termination fee of 50 million
euros ($56.2 million) to Siltronic, as previously agreed.
The company "has not been able to obtain the approval from the
German government before the deal's deadline on Jan. 31,"
GlobalWafers said in a stock exchange filing Tuesday.
It said that it is "very sorry" about the outcome and that it
will continue to work closely with European customers.
"GlobalWafers will analyze the non-decision of the German
government on the acquisition and consider its impact on future
investment strategy," the company said.
The development confirmed investor fears that the takeover
couldn't receive a regulatory green light soon enough. In January,
shares in Siltronic tumbled on news that Germany still hadn't
cleared the acquisition, prompting GlobalWafers to issue a
statement on Thursday to reassure investors that the deal still had
a chance.
GlobalWafers in 2020 made an all-share offer for Siltronic at
EUR125 a share and later raised the price to EUR140 a share.
GlobalWafers shares weren't trading Tuesday because of the Lunar
New Year holiday in Taiwan.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
February 01, 2022 01:25 ET (06:25 GMT)
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