If the deal materialises, the offeror intends to amalgamate the semiconductor businesses of both companies
[SINGAPORE] Advanced Systems Automation intends to make a voluntary conditional offer for all the shares of Asti, it said in a bourse filing on Wednesday (Jan 14).
The offer will be made only if pre-conditions have been satisfied or waived in the next three months, or a date determined after discussions with the Securities Industry Council.
These pre-conditions include either the resumption of trading of Asti shares, or the approval of a transfer of Asti shares to Advanced Systems Automation if trading does not resume.
The exchange should also provide its approval in-principle for the offer, and for the offeror to issue new shares as consideration for the offer.
This is also pre-conditional on the offeror’s shareholders’ approval in a general meeting.
Advanced Systems Automation is planning to offer two of its new shares for each offer share, at S$0.005 apiece.
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It said that, as at Wednesday, it does not own or control, directly or indirectly, any shares in Asti.
Advanced Systems Automation – whose core business is in the manufacturing of electromechanical components and parts for the semiconductor and consumer electronics industries – said the offer will allow it to expand its in-house capabilities to service the semiconductor industry.
Asti provides tape and reel packaging services, tape making services, manpower services and integrated circuit programming services to original equipment manufacturers, contract manufacturers and component distributors globally.
The offeror expects the offer can “lead to synergies that will result in better business prospectus, operational efficiency and increased cost savings”.
It also said Asti’s current board of directors “(failed) to deliver on their promises when they took over the company”.
“Overall, the company’s current directors have not delivered nor returned much value to shareholders since the company’s current directors took over the company in January 2024,” it added.
Advanced Systems Automation said that if the offer goes through, it intends to amalgamate the semiconductor businesses of both companies; list the enlarged semiconductor business on a reputable stock exchange or undertake a trade sale; and distribute the shares or returns to shareholders.
It added that it does not intend to privatise Asti.
Shares of Advanced Systems Automation closed flat at S$0.005 on Wednesday, before the news. Shares of Asti, which have been suspended since 2022, last traded at S$0.014.
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