IQE PLC Iqe Plc: Acquisition Of Minority Interests In Iqe Taiwan Corporation
October 05 2020 - 1:00AM
UK Regulatory
TIDMIQE
IQE plc
Cardiff, UK
5 October 2020
Acquisition of minority interests in IQE Taiwan Corporation
IQE plc (AIM: IQE, "IQE" or the "Group"), the leading manufacturer of
advanced semiconductor wafer products for the global semiconductor
industry, is pleased to announce the acquisition of third-party
shareholdings in IQE Taiwan Corporation ("IQE Taiwan"), taking IQE's
ownership from 90.18% to 100% (the "Acquisition").
The Acquisition was effected using a statutory share swap arrangement
under Taiwan's Business Mergers and Acquisitions Law (the "Share Swap").
Selling shareholders who accepted the Share Swap will be issued with
shares in IQE on the basis of the average closing price of IQE's
ordinary shares of 1p ("Ordinary Shares") on AIM in the 30-day period
prior to today's Acquisition effective date. Selling shareholders who
rejected the Share Swap will have their shares in IQE Taiwan purchased
for cash.
Selling shareholders representing 5.04% of the shares in IQE Taiwan, and
51% of the third-party shareholdings, accepted the Share Swap and the
aggregate consideration payable to those shareholders is GBP1,437,646
which will be settled through the issue of 2,606,689 Ordinary Shares at
an issue price of 55.15p per Ordinary Share (the "Consideration
Shares"). Selling shareholders representing 4.78% of the shares in IQE
Taiwan, and 49% of the third-party shareholdings, rejected the Share
Swap and will have their shares in IQE Taiwan purchased for cash. IQE
has agreed a cash price with a number of those shareholders but is
waiting for the Taiwan Court to determine the price payable to the
others, as part of the normal process to be followed under Taiwan's
Business Mergers and Acquisitions Law. IQE will therefore update the
market once the total consideration has been determined.
Application for admission
Application will be made for the Consideration Shares to be admitted to
trading on AIM ("Admission") and it is expected that Admission will take
place on or around 6 October 2020.
Following Admission, the Consideration Shares will rank pari passu with
the existing Ordinary Shares, the total number of Ordinary Shares in
issue will be 799,889,941 and the total number of voting rights will
also be 799,889,941. This figure may be used by shareholders as the
denominator for the calculations by which they will determine if they
are required to notify their interest in, or a change to their interest
in, the share capital of the Group under the FCA's Disclosure and
Transparency Rules.
Tim Pullen, Chief Financial Officer of IQE, said:
"IQE's Taiwan subsidiary is of strategic importance to the Group as a
base for epitaxy production in the Asia region. Having invested in the
expansion of the facility in 2019 and looking forward to further growth
in the future, I'm delighted to be bringing the entity under wholly
owned status."
Contacts:
IQE plc
+44 (0) 29 2083 9400
Drew Nelson
Tim Pullen
Amy Barlow
Peel Hunt LLP (Nomad and Joint Broker)
+44 (0) 20 7418 8900
Edward Knight
Nick Prowting
Christopher Golden
Citigroup Global Markets Limited (Joint Broker)
+44 (0) 20 7986 4000
Christopher Wren
Peter Catterall
Headland Consultancy (Financial PR)
+ 44 (0) 20 38054822
Andy Rivett-Carnac: +44 (0) 7968 997 365
Chloe Francklin: +44 (0)78 3497 4624
ABOUT IQE
http://iqep.com
IQE is the leading global supplier of advanced compound semiconductor
wafers and materials solutions that enable a diverse range of
applications across:
-- handset devices
-- global telecoms infrastructure
-- connected devices
-- 3D sensing
As a scaled global epitaxy wafer manufacturer, IQE is uniquely
positioned in this market which has high barriers to entry. IQE supplies
the whole market and is agnostic to the winners and losers at chip and
OEM level. By leveraging the Group's intellectual property portfolio
including know-how and patents, it produces epitaxy wafers of superior
quality, yield and unit economics.
IQE is headquartered in Cardiff UK, with c. 650 employees across nine
manufacturing locations in the UK, US, Taiwan and Singapore, and is
listed on the AIM Stock Exchange in London.
(END) Dow Jones Newswires
October 05, 2020 02:00 ET (06:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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