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WPG Proposed to Invest WT through Tender Offer


WPG Proposed to Invest WT through Tender Offer


Date of Announcement: November 12th, 2019


A decision has been made by the board of WPG Holdings (“WPG”, TWSE: 3702) today (i.e., November 12th, 2019) to acquire a maximum number of 177,110,000 ordinary shares of WT Microelectronics Co., Ltd. (“WT”, TWSE: 3036), representing approximately thirty percent (30.0%) of the issued and outstanding shares thereof (“Max Quantity of Shares”), at a price of 45.8 New Taiwan Dollars per share through a tender offer (the “Tender Offer”), the offer period of which will commence from nine o’clock (9:00am) in the morning of November 13th, 2019 to three-thirty in the afternoon (3:30pm) of December 12th, 2019.


The minimum number of shares to be acquired in the Tender Offer is 29,516,800 shares, representing approximately five percent (5.0%) of the issued and outstanding shares of WT. The condition of the Tender Offer will be deemed fulfilled once the number of shares held by shareholders accepting the offer exceeds such minimum number. WPG will then proceed with the Tender Offer to the extent not exceeding the Max Quantity of Shares. In case the number of shares held by shareholders accepting the offer exceeds the Max Quantity of Shares, WPG will acquire the shares from all accepting shareholders pro rata according to the formula specified in the Tender Offer Prospectus.


The Tender Offer is basically financial purpose oriented. WPG has long acquired in-depth knowledge in the industry of electronic parts and components distribution, which WT is a part of. In the past few years, WT has demonstrated steady performance and has been making stable profit. With its average return on equity of around 13.5% and average dividend yield of around 6% during the preceding 2 years, WT is considered a viable investment target and can lead to reasonable financial return in the long run. WPG expects WT to continue its stable business performance as it has demonstrated to its investors, so as to receive steady financial returns and launch opportunities for friendly dialogue with WT. WPG has no intention to influence the operations of WT except for the protection of shareholder rights and interests.


With the trade war between US and China, all industries (including electronic parts and components distributors in Taiwan) face severe challenges both internally and externally. In view of this, WPG has been planning on how it could utilize new technology and new methodology to create new value in the next 10-30 years, from smart business logistics to smart manufacturing logistics, focusing on client needs and building a collaborative environment to face the challenges in the new era.


There are a wide variety of innovative measures for WPG to adopt in response to the changes of the environment - whether to integrate resources, to promote digital transformation, to strengthen the financial strength, or to invest in good targets, all of which can serve to build a collaborative environment and promote the stable growth of WPG.


As a leading distributor of semiconductor parts and components with in-depth knowledge and strength in supply chain management for the semiconductor industry, to smoothly ride through this wave of global industrial and economic turmoil, WPG looks forward to, through the contemplated equity investment, receiving steady financial returns and launching opportunities for friendly dialogue with WT.


WPG press contact: Cliff Yuan / Zoe Peng

Contact number (direct line): 886-2-7712-5268 / 886-2-7712-5262

(for relevant information of WPG, please visit www.WPGholdings.com)