The American depositary receipts (ADRs) of Taiwan-based integrated circuit packaging and testing services provider Siliconware Precision Industries Co. jumped on Wall Street overnight. That’s in the wave of an acquisition plan proposed by Taiwanese rival Advanced Semiconductor Engineering Inc. (ASE).
The soaring ADRs reflected a more than 30% premium of the acquisition price to Siliconware’s closing price on Friday. ASE proposed acquiring a stake in Siliconware after the local equity market closed Friday, catching investors off guard.
Overnight, Siliconware’s ADRs rose 24.13% on Wall Street, while ASE’s ADRs added 5.33% amid hopes that such a tie-up will further strengthen the suitor’s global standing. Currently, ASE is the largest IC packaging and testing services provider.
The two stocks significantly outperformed Wall Street, which was hard hit by concerns over a slowdown of the global economy.
In a news conference held Friday, ASE announced a tender offer to acquire an up to 25% stake in Siliconware. ASE also said that the acquisition plan is simply a financial investment strategy, adding that it has no plan to intervene in Siliconware’s operations.