Tongxin Electronics spent nearly 2 billion yuan to acquire a listed semiconductor testing plant in Singapore, a premium of 129%

From left are Lu Shaoping, general manager of Tongxin Electric, and Huang Jiali, chief operating officer and chief financial officer.

CIS packaging and testing and ceramic circuit board manufacturing factory Tongxin Electronics (6271) held a press conference today (9th) to announce that the board of directors passed a resolution to acquire Global Testing Corporation, a listed company in Singapore, through a Scheme of Arrangement. Limited (GTC) 100% equity, the purchase price per share is S$2.3, which is approximately 129.31% higher than the volume weighted average price of GTC in the month before the suspension of trading (including the last trading day), and it is expected to acquire a total of 33,351,527 GTC ordinary shares. The total amount of the conversion transaction is approximately SGD 76.71 million (approximately NT$1.965 billion).

Tong Xindian stated that this transaction will be completed after the resolution of the extraordinary meeting of GTC shareholders and the approval of the Investment Review Department of the Ministry of Economic Affairs of Taiwan, the Singapore Stock Exchange and the Singapore Court. Through the acquisition and subsequent privatization and delisting of GTC, it will bring greater operating flexibility to Tongxin Electric, and it will also be able to more efficiently integrate GTC's existing business into Tongxin Electric for global management and development integration.

Tongxindian pointed out that with the continuous development of application markets such as optical communications, power semiconductors and mixed signals, the complexity and technical threshold of semiconductor products are increasing day by day, and the demand from global customers for one-stop overall solutions for packaging and testing is also increasing. The purpose of this acquisition is to promote the company's transformation from a traditional packaging manufacturer to a comprehensive packaging and testing integrated service provider.

Tongxindian stated that after the acquisition, it will combine GTC's mature semiconductor testing technology, test platform, engineering capabilities, production capacity, existing customer base and professional technical team, and deeply integrate it with Tongxindian's existing packaging technology and resources, giving full play to the complementary advantages of both parties. It is expected to deepen technical cooperation and operational synergies, expand the service scope of packaging and testing integrated solutions, and comprehensively enhance the competitiveness and customer value of the combined group in the semiconductor packaging and testing industry.

Global Testing Corporation Limited (GTC) was founded by Chen Taiming, chairman of Tongxin Electronics, in 1998. It was listed on the Singapore Exchange in 2005, becoming the first semiconductor testing company in Taiwan to be listed in Singapore. Now, through the acquisition of Tongxin Electronics, it has once again been included in the corporate territory of Panyageo Group.