Inotera Memories Inc. (???), a Taiwan-based DRAM chip maker, said Tuesday that it has scheduled a stock market delisting from the local main board for Dec. 6 after completing a deal in which its U.S. counterpart, Micron Technology Inc., will acquire the Taiwanese firm.
Inotera's board of directors concluded a meeting that day to finalize a timeframe for the acquisition deal and pick a date for the stock market delisting, company Chairman Lee Pei-ing (???) said.
Lee said, however, that the timeframe is pending approval from Micron's board of directors.
The delisting schedule decision came after Inotera announced last week that the acquisition deal would be completed in December, which relieved many investors who had previously feared that the deal would fall apart.
Micron, which currently holds a 33 percent stake in Inotera, proposed in December 2015 acquiring the remaining 67 percent stake for about NT$130 billion (US$4.1 billion). After the acquisition, Inotera will become a wholly owned subsidiary of Micron Semiconductor Taiwan Co., a subsidiary of Micron.
The acquisition price translated into NT$30 per share for Micron to acquire the remaining stake in Inotera.
Due to a move to postpone the acquisition deal announced by Micron June 8, shares of Inotera fell to NT$23.25 June 15 from NT$29.40 recorded at the beginning of that month, as concerns over the future of the deal had been running deeper.
Lee said that Micron will pay NT$30 per Inotera share as it had promised before. Since Micron signed an agreement with a banking consortium that day to secure NT$80 billion in a syndicated loan to finance the acquisition, the deal will no doubt be completed, Lee added.
Inotera is now a joint venture between Micron and Taiwan-based Nanya Technology Corp. (???). Nanya Technology, which owns a 24.2 percent stake in Inotera, is a DRAM manufacturing arm of conglomerate Formosa Plastics Group (????).
As part of the acquisition deal, Nanya will invest up to NT$31.5 billion to buy a stake in Micron, but the exact investment amount will need to be finalized by the U.S. firm's board of directors, Lee said. Lee is also the president of Nanya.
Nanya, in turn, will secure high-end DRAM production technology from Micron, while the schedule for the technology introduction will need some time to be finalized, as the Taiwanese firm will observe market conditions and the progress of the technology development, Lee said.
On Tuesday, shares of Inotera rose 0.17 percent to close at NT$29.30, outperforming the local main board, in which the weighted index ended down 0.50 percent.
According to the Taiwan Stock Exchange, Inotera shares have been listed on the main board since March 17, 2006.
Source: Focus Taiwan News Channel