GlobalWafer failed to meet the deadline in Siltronic deal
The deadline for GlobalWafer's all-cash tender offer for Siltronic, has passed without approval by the German Government.
The German Government’s approval was the last outstanding completion condition after all other authorities and regulators have cleared the transaction. GlobalWafers says it made extremely far-reaching remedy proposals and commitments to address the concerns of the German Government and repeatedly offered its willingness to discuss alternative solutions.
"We have not been able to obtain the approval from the German Government before the long stop date. Based on our efforts to reach a mutually acceptable solution as well as our long and successful history in Europe this outcome is very disappointing," says Doris Hsu, Chairperson and CEO of GlobalWafers in a press release. "We will certainly continue to work closely with our European customers, many of which supported the proposed transaction. We will analyze the non-decision of the German Government and consider its impact on our future investment strategy."
GlobalWafers directly holds 13.67% of the shares of Siltronic. There are no specific restrictions regarding potential future trading activities for these shares. The approximately 56.60% of the outstanding shares of Siltronic tendered into the all-cash offer during the acceptance period will be re-booked to their original owners.
GlobalWafer says that this unsuccessful transaction will not impact the company's operations. Europe remains an important market for GlobalWafers and it remains committed to the customers and employees in the region.
The business combination agreement between the two companies foresees that GlobalWafers will pay a termination fee of EUR 50 million to Siltronic in the event of failure to obtain required regulatory approvals.