Applied Materials offers up to $500 million for part of Netherland's ASMI

09 June 2008

Applied Materials Inc has made an unsolicited offer to acquire the atomic-layer deposition (ALD) and plasma-enhanced chemical vapor deposition (PE-CVD) units of ASM International of the Netherlands for between $400 million and $500 million.

The offer, which does not include the ASMI's back-end unit and some front-end tool facilities, was communicated orally, the company said in a release.

Based in Bilthoven, the Netherlands, ASM NV is Europe's second-largest maker of semiconductor equipment.

A divestment of the ALD and PC-CVD activities would have major implications for ASMI's current strategy and business model, it said, adding, ''ASMI's management board and supervisory board will internally discuss the offer and its implications. ASMI will determine its initial position with respect to the offer and make a public announcement thereof as soon as reasonably possible and no later than on June 14.''

The ALD and PE-CVD operations that Applied wants to buy account for 30 to 35 per cent of ASMI's front-end revenue of around 451 million euros ($704 million) last year.

The front-end unit posted a first-quarter net loss of 1.1 million euros, compared with a profit of 1.2 million euros a year earlier. ASMI has said it anticipates a net loss at the unit in the second quarter.