WPG Group announced its cooperation with WT Microelectronics and plans to acquire 30% of the latter's equity!

On November 12, 2019, WPG Investment Holding Co., Ltd. held a board of directors meeting and approved a public tender offer to acquire the issued and outstanding common shares of WT Microelectronics Corporation at NT$45.8 per share. The maximum planned acquisition quantity is 177,110,000 shares (approximately 30.0% of the total issued shares of WT Microelectronics). The acquisition period will be from 9:00 a.m. on November 13, 2019 to 3:30 p.m. on December 12, 2019.

WPG's announcement states that the minimum purchase quantity for this public tender is 29,516,800 shares (approximately 5.0% of the total number of shares issued by WT Microelectronics). If the number of common shares to be sold reaches the minimum purchase quantity, the conditions for this public tender will be met, and WPG will continue to purchase all common shares to be sold by WT Microelectronics with the maximum purchase quantity as the upper limit in accordance with the law. If the number of common shares to be sold exceeds the aforementioned maximum purchase quantity, WPG will purchase the shares to be sold from all sellers in the same proportion according to the calculation method. The calculation method is detailed in the public tender instructions.

WPG's acquisition of part of WT Microelectronics' equity through this public acquisition is aimed at financial investment. WT Microelectronics is an electronic component distribution service provider, and its industry is familiar to our company. Based on past observations, WT Microelectronics' operating performance and profits have been stable over the years. In the past two years, the average return on equity was about 13.5%, and the average cash dividend yield was about 6%, which is a good financial investment target. In the long run, investing in WT Microelectronics should be able to expect a reasonable financial investment return. WPG hopes to bring good investment returns to WPG through WT Microelectronics' stable operating performance over the years, and gradually open up opportunities for healthy dialogue with WT Microelectronics. Except for what is necessary to protect the interests of shareholders, there is currently no plan or idea to affect WT Microelectronics' operations.

Under the Sino-US trade war, the global economic situation is changing rapidly. All industries are facing many challenges from both internal and external environments, and Taiwan's electronic component distributors are no exception. In recent years, WPG has actively considered how to create new value with new technologies and new methods in the next 10, 20 or even 30 years, from smart business logistics to future smart manufacturing logistics, and continue to focus on customer needs, looking forward to establishing a collaborative ecosystem to face the challenges of the times.

WPG has a variety of pioneering practices for responding to environmental changes. Whether it is promoting digital transformation, actively integrating resources, or strengthening financial health and finding good investment targets, it is conducive to building a collaborative ecosystem and the healthy development of the company itself.

As a leading semiconductor component distributor, with its deep understanding and advantages in semiconductor industry supply chain management over the years, WPG looks forward to obtaining stable returns and dividends through this equity investment in the ever-changing industry and economy, and gradually opening up opportunities for healthy dialogue with WT Microelectronics.