Singapore, U.S. tech rivals merge in $1.6b deal

Singapore, U.S. tech rivals merge in $1.6b deal

Agence France-Presse
Singapore

Rival chip testing and packaging firms ST Assembly Test
Services Ltd. of Singapore and U.S.-based ChipPAC Inc. said on
Tuesday they had agreed to merge in a deal worth US$1.6 billion.

The companies said they had signed a "definitive agreement" to
merge in an all-stock transaction expected to lead to the
formation of the world's second biggest chip testing house.

Combined turnover for 2004 is expected to be more than $$1
billion, they said in a joint statement.

Under the deal, shareholders of the NASDAQ-listed ChipPAC will
receive 0.87 ST Assembly American Depositary Shares for each
common share they hold.

The transaction is valued approximately at over S$1.6 billion
based on the closing price of ST Assembly American Depositary
Shares on Monday of S$13.34.

ST Assembly is listed both in the Singapore Exchange and the
New York-based NASDAQ. It has operations extending from Singapore
to the United States, Britain, Japan, China and Taiwan.

Both firms test and package semiconductors for a wide array of
usages.

ST Assembly shareholders will hold 54 percent of the merged
entity while ChipPAC shareholders will hold 46 percent.

"The combined company will have a robust platform for growth
as one of the world's leading independent suppliers of high-end
packaging design, assembly and test solutions," said Tan Lay
Koon, chief executive of the merged firm.