Siliconware Precision Industries (SPIL) – Tender Offer with Odd lot provision – 9% upside

Current Price – 7.55

Offer Price – 8.22

Upside – 9% ($134 guaranteed return for odd lots)

Odd lots – shareholders who own less than 200 shares will be bought out on priority basis.

Expiration date (to tender shares) –  11 February 2016

Tender document

 

This is a hostile tender offer carried out by ASX, and as such is has a higher risk of being cancelled than other tenders presented on this site. Moreover, the tender is subject to regulatory approval. However, a similar tender has already been carried out successfully 3 months ago, so quite likely the situation will repeat itself. Please refer to pages 13-17 of the tender doc, to familiarize yourself with the whole proxy fight situation. The offer is in Taiwanese dollars, NT$275/share, which is equivalent to c. $8.22 per ADR.

Advanced Semiconductor Engineering (ASX) is offering to acquire, for cash, up to 770,000,000 Common Shares, including those represented by ADSs, which represents approximately 24.71% of the issued and outstanding share capital of Siliconware Precision Industries. We are offering to pay NT$275 for each ADS in cash, without interest, payable in U.S. dollars.

No proration for odd lot holders.

We will purchase all ADSs and Common Shares validly tendered and not properly withdrawn by any shareholder tendering 1,000 or fewer Common Shares, including those represented by ADSs. As each ADS represents 5  common shares, the odd lot threshold for ADS is 200.

Source and amount of funds

Assuming the Offers are fully subscribed, we will need approximately NT$41.4 billion to purchase the Common Shares and ADSs pursuant to the Offers and to pay related fees and expenses.

As of November 30, 2015, Purchaser had cash and cash equivalents in the amount of approximately NT$54.7 billion. Purchaser expects to use NT$12.4 billion of its cash in hand and NT$30 billion borrowed through syndicated loan facilities to fund the Offers.