GlobalWafers lowers acceptance threshold in last attempt to save Siltronic deal

Siltronic's management supports the deal, but some minority investors have said they are unhappy with the offer. (Photo by Bloomberg)

Siltronic's management supports the deal, but some minority investors have said they are unhappy with the offer. (Photo by Bloomberg)

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BERLIN (Jan 25): Taiwan's GlobalWafers Co Ltd has lowered the minimum acceptance threshold and extended the deal deadline in a bid to try and save its 4.35 billion euro ($5.3 billion) offer for German silicon wafer maker Siltronic.

GlobalWafers, which makes silicon wafers used in computers, smart phones, TVs, gaming devices and other appliances, said in a statement on Monday that the minimum acceptance threshold for the 145 euro per share deal had been reduced to 50% from 65%.

The deadline for shareholders to accept the offer has been extended by two weeks until Feb. 10.

The move comes after the Taiwanese firm raised its offer twice in two days last week, as it seeks to win over sceptical shareholders to create the world's second-largest player in the 300 millimetre wafers market behind Japan's Shin-Etsu.

Siltronic's management supports the deal, but some minority investors have said they are unhappy with the offer.

GlobalWafers has said the revised terms are final and it will not make a further public offer, if the minimum acceptance threshold is not met.

The Taiwanese company currently holds a nearly 37% stake in Siltronic, including the 30.8% stake owned by former Siltronic parent Wacker Chemie

A local trader said it expects GlobalWafers to purchase more shares in the market, while some big shareholders might also tender some shares to get the bid to go through.

"Even considering the risk the bid could fail (...) we think they offer good value also stand-alone given an attractive buoyant market," the trader said.

Shares in Siltronic closed at 145.20 euros per share on Friday.

($1 = 0.8210 euros)