Taiwan’s GlobalWafers has sweetened its takeover offer for rival Siltronic to €145 per share ahead of shareholders’ approval of the deal.
The raised bid announced on Jan. 23, which values Siltronic (0R8P) at €4.35 billion, was lifted from the €140 per share proposed on Jan 22 and the original offer of €125 per share made in December. The new offer, which GlobalWafers said would be the final bid, represents a premium of 28% over the closing price of Siltronic’s stock on Nov. 27. Siltronic is one of the world’s largest manufacturers of hyperpure silicon wafers with production sites in Asia, Europe and the US.
“Siltronic’s Executive Board welcomes the increased offer price and considers the tender offer attractive,” the company said in a statement.
The tender offer is subject to a minimum acceptance threshold of 65% as well as merger control and foreign investment approvals. On Dec. 22, Siltronic’s executive board and supervisory board recommended that Siltronic shareholders accept the tender offer. Shareholders have until Jan. 27 to tender their shares and approve the deal.
GlobalWafers, which together with subsidiaries, currently owns a 6.06% stake in Siltronic, announced that the silicon wafer’s parent company Wacker Chemie AG, which has a 30.8% stake, has already accepted the offer.
“We remain confident that this transaction will create significant shareholder value and meaningful benefits to our customers, employees and other stakeholders,” said GlobalWafers CEO Doris Hsu. “This is now our best and final offer and a very fair price to all Siltronic shareholders. We therefore strongly encourage Siltronic shareholders to tender their shares.”
Furthermore, Siltronic had announced that it plans to propose a dividend of approximately €2 per share for fiscal 2020, which is expected to be paid before the completion of the transaction. (See Siltronic stock analysis on TipRanks)
Siltronic shares, which rose 5.1% to €146.55 on Jan. 22, have jumped more than 55% over the past year. Following the sharp rally, analysts are now sidelined on the stock with a Hold analyst consensus based on 6 Holds, 1 Sell and 2 Buys. That’s with an average price target of €127.83, which implies 13% downside potential over the coming 12 months.