ASE Technology Holding Announces the Proposed Sale and Disposal of Equity Interests in its Subsidiaries, GAPT Holding Limited and ASE (Kun Shan) Inc., to Wise Road Capital

Rhea-AI Summary

ASE Technology Holding Co., Ltd. (ASX) announced a Sale and Purchase Agreement with Beijing Wise Road Asset Management Co., Ltd. for the sale of shares and equity interests in GAPT Holding Limited and its subsidiaries for US$1.46 billion. The transaction includes an immediate payment of US$1.08 billion upon completion, and an additional US$380 million six months later. ASE expects to recognize a tax-effected gain of approximately US$630 million. This strategic move aims to enhance ASE's competitive position and investment in advanced technologies.

Positive

• ASE expects to recognize a tax-effected gain of approximately US$630 million from the transaction.
• The deal of US$1.46 billion improves ASE's competitive edge and resource allocation in China.
• ASE plans to enhance its investment in advanced technology development.

Negative

• None.

TAIPEI, Taiwan, R.O.C., Dec. 1, 2021 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TWSE Code: 3711, NYSE Code: ASX) ("ASE") announces today, that ASE and Beijing Wise Road Asset Management Co., Ltd. ("Wise Road Capital") have entered into a Sale and Purchase Agreement by which ASE will sell shares and equity interests in GAPT Holding Limited (GAPT Holding Limited directly or indirectly holds 100% equity interests in Global Advanced Packaging Test (Hong Kong), ASE (WeiHai), Inc., Suzhou ASEN Semiconductors Co., Ltd. and ASE Advanced Semiconductor (Shanghai) Limited) and ASE (Kun Shan) Inc. to Wise Road Capital or its designated affiliate in exchange for a cash consideration in an aggregate amount of US$1.46 billion (the "Transaction").

According to the sale and purchase agreement, ASE shall transfer the subject shares and equity interests in each target company to Wise Road Capital or its designated affiliate on the Completion Date.  Wise Road Capital shall pay to ASE equivalent cash consideration in two parts: 1) US$1.08 billion plus aggregated cash balance and minus aggregated outstanding debt balance of the target companies will be paid upon the Completion Date and 2) US$380 million on the first business day six months after the Completion Date.  ASE expects to recognize a tax effected gain of approximately US$630 million from the Transaction.

Through the completion of the Transaction, ASE will improve its overall competitive edge by optimizing its strategy and resource allocation in China, while further enhancing its investment in advanced technology development and expanding its leading edge capacities within Taiwan. ASE believes it can better leverage its global presence and leading-edge technology to better serve its global customer base.

Corporate Contact:
Eddie Chang, Vice President
ASE Technology Holding Co., Ltd.
eddie_chang@aseglobal.com
Tel: +886.2.6636.5678

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SOURCE ASE Technology Holding Co., Ltd.

FAQ

What is ASE Technology Holding's recent transaction with Wise Road Capital?

ASE Technology Holding has agreed to sell shares in GAPT Holding Limited and related subsidiaries for US$1.46 billion.

When will ASE receive payments from the sale to Wise Road Capital?

ASE will receive US$1.08 billion upon completion of the transaction and US$380 million six months later.

How much gain is ASE expected to recognize from the sale?

ASE expects to recognize a tax-effected gain of approximately US$630 million.

What will ASE do with the proceeds from the Wise Road Capital transaction?

ASE plans to optimize its strategy and resource allocation in China, and invest in advanced technology development.