Shareholders of ChipMOS Technologies have approved the company's plan to sell a 25% stake to China's state-owned Tsinghua Unigroup. ChipMOS Technologies (Bermuda) has announced that the required greater than 50% of shareholders of ChipMOS Technologies (ChipMOS Taiwan) have voted in person or by proxy to approve the proposed private placement with Tsinghua Unigroup. In total, 99.3% of the shares voted were voted in favor of the proposed private placement, representing approximately 88.7% of the total shares outstanding of ChipMOS Taiwan.

ChipMOS added that the plan to have Tsinghua Unigroup subscribe to its new shares through a private placement remains subject to routine regulatory approvals inTaiwan.

A proposal will be submitted by Tsinghua Unigroup to Taiwan's Investment Commission for review after the Lunar New Year holiday in mid-February, according to ChipMOS chairman and CEO SJ Cheng. The review is expected to take 2-4 months to complete, said Cheng.

Cheng noted that proceeds from Tsinghua Unigroup's offer will be used for capacity expansions and technology development at its plants in China and Taiwan.

ChipMOS in December 2015 announced a share purchase agreement it had reached with Tsinghua Unigroup. ChipMOS has agreed to sell 299,252,000 common shares of ChipMOS Taiwan to Tsinghua Unigroup at a price of NT$40 (US$1.19) per unit, or for a total of NT$12 billion. ChipMOS also formed a strategic alliance with Tsinghua Unigroup to expand its business in China.

Tsinghua Unigroup has also reached a similar deal with two other Taiwan-based packaging and testing companies including Powertech Technology (PTI) and Siliconware Precision Industries (SPIL). Earlier this month (January 2016), PTI's shareholders approved Tsinghua Unigroup's investment in the company through a private placement.

By: DocMemory
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