WT Microelectronics (WTM; ticker 3036 TT) and ASMedia Technology (ASMedia; ticker 5269 TT) held board meetings respectively on February 21, 2020. Both Board of Directors approved matters of share exchange to collaborate according to Company Act 156-3. Both companies plan to issue new shares for exchange on basis per ASMedia common share to exchange 19 WTM common shares. After completion of the shares exchange, ASMedia will own 22.39% of WTM shareholdings and WTM will own 13.04% of ASMedia shareholdings.
ASMedia has extensive experience in high-speed interface IC design field and clients include major motherboard companies and brand OEMs. WTM is a professional semiconductor distributor and is highly experienced regarding semiconductor supply and demand, customers’ operations, and product trends. Through this share exchange cooperation, both companies can integrate resources to pursue new high-speed interface business opportunities relating to 5G technology, cloud computing, AIoT, and customized chip trends, and also expand demand of new applications from the China PC and server market.
This share exchange transaction is based on strategic collaboration and synergy to both parties. Additionally, it can combine the strength of both parties, leverage market information, integrate technologies, products, services and resources from upstream to downstream to improve value and strengthen competitiveness. Therefore, this share exchange can enhance business performance and profitability for both companies.