Wafer foundry UMC (2303-TW) (UMC-US) announced today (27) that it will spend RMB 4.858 billion (approximately NT$21.4 billion) to buy back all of its joint venture shareholders from Leadcore China in three years. Lianxin’s equity, making it a wholly-owned subsidiary of UMC.
Leadcore is a 12-inch factory jointly established by UMC, Xiamen Municipal Government and Fujian Electronic Information Group. UMC will indirectly acquire all of its shares in Leadcore from Xiamen Jinyuan Industrial Development Co., Ltd. at RMB 4.116 billion. RMB 742 million to acquire all the shares of Leadcore from Fujian Electronic Information Industry Venture Capital Cooperative Enterprise.
UMC said that when it signed the contract with the investor, it was agreed that Leadcore would be included as a wholly-owned subsidiary seven years after its establishment. UMC’s repurchase will be carried out from July this year, with 60%, 20% and 20% ratios, three times in three consecutive years to complete the transaction.
Leadcore successfully turned a profit in a single quarter in the fourth quarter of last year, and made a profit of NT$644 million in the first quarter of this year. The current monthly production capacity is 27,500 pieces and will be expanded to 32,000 pieces.
