IQE Share News (IQE)

(Sharecast News) - Semiconductor wafer manufacturer IQE announced the acquisition of third-party shareholdings in IQE Taiwan on Monday, taking its ownership from 90.18% to 100%.
The AIM-traded firm said the acquisition through a statutory share swap arrangement under Taiwan's Business Mergers and Acquisitions Law.

Selling shareholders who accepted the share swap would be issued shares in IQE on the basis of the average closing price of its ordinary shares on AIM in the 30-day period prior to the acquisition effective date, being Monday.

IQE said selling shareholders who rejected the share swap would have their shares in IQE Taiwan purchased for cash.

It said selling shareholders representing 5.04% of the shares in IQE Taiwan, and 51% of the third-party shareholdings, accepted the share swap, with the total consideration payable to those shareholders being £1.44m, which would be settled through the issue of 2,606,689 shares at a price of 55.15p each.

Selling shareholders representing 4.78% of the shares in IQE Taiwan, and 49% of the third-party shareholdings, rejected the share swap, and would have their shares in IQE Taiwan purchased for cash.

IQE said it had agreed a cash price with a number of those shareholders, but was waiting for the Taiwan court to determine the price payable to the others, as part of the normal process to be followed under the Business Mergers and Acquisitions Law.

It said it would update the market once the total consideration was determined.

"IQE's Taiwan subsidiary is of strategic importance to the group as a base for epitaxy production in the Asia region," said chief financial officer Tim Pullen.

"Having invested in the expansion of the facility in 2019 and looking forward to further growth in the future, I'm delighted to be bringing the entity under wholly owned status."

At 1251 BST, shares in IQE were up 2.57% at 53.85p.