Siliconware Precision Industries (SPIL) has failed to gain the required support from shareholders for two resolutions that were necessary for SPIL to carry out a proposed share-swap deal with Foxconn Electronics (Hon Hai Precision Industry).
SPIL proposed to increase authorized shares from 3.6 billion units to five billion, and increase the limit on the investments in a single security from 20% of the company's net worth to 60%. However, both proposed amendments were rejected at SPIL's provisional shareholders meeting on October 15.
Advanced Semiconductor Engineering (ASE), which holds a 25% stake in SPIL, was unable to exercise its voting right at the meeting but had expressed its opposition to SPIL's planned capital increase and share-swap deal with Foxconn. ASE became SPIL's largest shareholder when its holding in the company was confirmed on September 22.
SPIL chairman Bough Lin reiterated he believed SPIL's vertical alliance with Foxconn would generate better outcomes than a horizontal alliance between it and ASE.
SPIL employees rally in Taichung, central Taiwan in support of the company's proposed tie-up with Foxconn
Photo: Michael Lee, Digitimes, October 2015
Article translated by Jessie Shen
