WT acquires Singapore subsidiary for NT$900 million! Fully controlled in advance
WT has accelerated the integration of overseas subsidiaries and recently announced that it will spend US$30.08 million (approximately NT$977 million) to purchase 20% of the equity from the majority shareholder of its Singapore subsidiary WT Semiconductor in advance, thereby incorporating WT Semiconductor into WT 100% owned subsidiary, sprinting towards Southeast Asia.On December 16, WT announced that the board of directors passed a resolution to acquire 20% of the remaining equity of the Singapore subsidiary WT Semiconductor in advance for US$30.08 million (equivalent to approximately NT$976 million), completing 100% leadership and integration of the board of directors of Singapore Shijian Technology. Southeast Asia and mainland China's industrial control and aerospace markets.
On April 13, 2022, WT Technology, through its 100%-owned subsidiary WT Semiconductor Pte. Ltd., purchased Singapore dollars in cash of 1.93 Singapore dollars per share and a total amount of approximately 232.2 million Singapore dollars (approximately 1.083 billion yuan). ), obtained 100% equity of Shijian Technology.
At that time, WT signed a shareholder agreement with Albert Phuay, the founder and CEO of Shijian Technology, and WT Semiconductor. Albert Phuay used part of the cash obtained from the transaction to obtain 20% of the equity of WT Semiconductor, while WT held 80%. According to the original plan, WT will exercise the call or put rights in the shareholders' agreement after the end of the 2024 fiscal year to complete the acquisition of the remaining equity.
However, in order to accelerate business integration, WT decided to complete the acquisition ahead of schedule. The signatories of the shareholders' agreement revised the shareholders' agreement to advance the time for exercising the put or call rights.
WT exercised a call option from Albert Phuay for approximately US$30.08 million to acquire its 20% stake in WT Semiconductor. After the transaction is completed, WT Semiconductor will become a wholly-owned subsidiary of WT , further consolidating its market competitive advantages and improving operating efficiency.
WT pointed out that this early acquisition will not only achieve strong comprehensive benefits for both parties, but also accelerate business expansion through complementary product lines and professional teams, further strengthen the product solutions and technical support provided to customers, and shorten the time to market for customers' products. time.
Shijian was listed on the Singapore Exchange in 2004 and has been deeply involved in the industrial control and aerospace fields for many years. The market covers Southeast Asia and mainland China, and has established long-term cooperative relationships with internationally renowned companies such as ADI, Microchip, Qorvo, Qualcomm and Samsung. Based on considerations such as low customer overlap and complementary product lines, WT and Shijian Technology began discussing mergers and acquisitions many years ago. After many rounds of negotiations, they finally reached an agreement in 2022.
According to industry analysis, in terms of effectiveness, the customer base established by both parties will greatly enhance WT acquires's distribution capabilities in the Asia-Pacific region. Through cross-selling different product lines, not only can potential effects be achieved, but also suppliers can be brought to a better place. Multiple business expansion opportunities.
After Shijian, WT also announced the acquisition of Future Electronics for US$3.8 billion on September 14. This was not only another large-scale acquisition in the industry, but also set a record for the largest amount of mergers and acquisitions by Taiwanese companies this year. After WT completed the acquisition of Fortune, its revenue strength was almost similar to that of Dalianda, and it further challenged the top three in the global semiconductor channel.
WT's consolidated revenue in November was NT$67.45 billion, a monthly decrease of 31.5% and an annual increase of 6.6%. The cumulative consolidated revenue for the first 11 months was NT$863.601 billion, an annual increase of 61.2%.
WT previously said that automotive electronics should grow in the Asian market, but the European and American markets are still adjusting. However, in the long term, the demand for semiconductors in automotive applications will still increase. In terms of industrial applications, affected by the overall economic environment, WT believes that it is the weakest link and is still undergoing inventory adjustments. In terms of communication applications, this year's growth will mainly come from optical communications, although related performance may decline by a single-digit percentage this quarter. In terms of data center applications, WT pointed out that AI servers have grown significantly in the first half of the year and may fluctuate in the short term. This quarter’s performance may drop by 10% quarter-on-quarter, but it will continue to increase in the long term. This season is the traditional off-season for PC applications. With the launch of new AI PC products, it is estimated that the market will also grow next year.
