Carlyle group in $5.5 billion acquisition bid for Taiwan''s ASE

27 November 2006

Mumbai: A private equity consortium led by US buyout firm Carlyle Group is negotiating to buy Advanced Semiconductor Engineering Inc., the world's largest chip packager, for around $5.5 billion.

The consortium offered to pay at least Taiwanese $39 a share, 9.9 per cent more than ASE's closing price in Taipei, Carlyle said in a statement. Carlyle said it is yet to make a formal offer. At T$39 a share, the potential Carlyle bid values the firm at about T$179 billion ($5.46 billion), ASE, however, said it had not yet approved a bid.

Advanced Semiconductor packages chips in plastic or ceramic housings and adds connectors so they can be assembled as part of computers, game consoles, cell phones and other electronic instruments.

Carlyle has roped in Advanced Semiconductor chairman Jason Chang, who holds 18.4 per cent of the Kaohsiung, Taiwan-based company in the bid, The company has confirmed the approach and the participation of co-founder Chang in the bid.
Goldman Sachs Group Inc. is advising Carlyle on the takeover bid. Carlyle has been investing in Taiwan since 1999, the company said.

"Discussions between ASE and the consortium have not been completed, and there can be no assurance that an offer will ultimately be made by the consortium or what the ultimate terms of such an offer would be," ASE said in a statement.

ASE saw its third-quarter profit more than double on recovering chip demand, but it forecast weaker sales and falling profit margins in the fourth quarter.