Carlyle Group Invest in Taiwanese Semiconductor Manufacturer
The Washington, D.C. based global private equity investment firm, the Carlyle Group announced Friday that it intends to purchase independent semiconductor manufacturing services provider, Advanced Semiconductor Engineering for $5.6 billion. This is major vote of confidence for the Taiwanese economy or as Greg Zeluck, who is in charge of the Carlyle Group`s buyouts in Asia, put it: ?We believe a potential acquisition of this nature illustrates Carlyle?s tremendous confidence in Taiwan,? He added. ?If completed, it will reinforce Tawain?s status as a first-rate international financial center and a key destination for global private equity capital.?
The Carlyle Group has bid $5.94 per American depositary receipt, or $1.19 per common share. This vote of confidence has not gone unnoticed by investors, who rallied Taiwanese semiconductor stocks. Advanced Semiconductor Engineering`s ADRs surged 15% in the New York Stock Exchange. Two other Taiwanese chip foundry companies also enjoyed a dramatic increase in investor interest, United Microelectronics gained 7.8% and Taiwan Semiconductor Manufacturing gained 1.7%. Jason Chang, chairman of Advanced Semiconductor Engineering is joining the bidding, pledging the 18.4% stake he controls.
The Carlyle Group has at least $44.3 billion of equity capital under its management focusing on leveraged buyouts, venture & growth capital, real estate and leveraged finance investments. The firm holds several offices in North America, Europe and Asia, employing more than 300 investment professionals in 14 countries including many leading captains of industry, as well as, high-ranking government officials. The company has already made some investments in the semiconductor industry, buying Austin-based Freescale Semiconductor for $17.6 billion, in September. The group also owns Jazz Semiconductor, a semiconductor foundry, and AZ Electronic Materials, a company that supplies electronic materials.
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