Alliance Semiconductor to Report $908 Million Pretax Gain in Fiscal Q4, 2000
SAN JOSE, Calif., Jan 5, 2000 (BUSINESS WIRE) -- Alliance
Semiconductor Corporation (Nasdaq: ALSC) today announced that it will
recognize a $908 million pre-tax ($532 million after-tax) gain in its
fiscal fourth quarter ending April 1, 2000 as a result of the merger of
United Semiconductor Corporation (USC) and United Silicon Inc. (USIC)
with United Microelectronics Corporation (UMC), a public company in
Taiwan.
The gain to be reported as non-operating income, represents the
appreciation of Alliance's investment in USC and USIC based on the
share price of UMC at the date of the merger (i.e. NTD 112, or
US$3.5685), as well as approximately $21 million additional gain
related to the sale of the USC shares in April 1998. As a result of the
merger, Alliance Semiconductor will own 283.3 million UMC shares, or
approximately 3.2% of the combined UMC Group, and will also maintain
its 25% and 3.71% capacity allocation rights in the former USC and USIC
foundries, respectively.
As previously announced, 50% of the 283.3 million shares Alliance will
receive are subject to a six-month "lock-up" or no trade period. Of the
remaining 50%, or 141.6 million shares, approximately 28.3 million
share will become eligible for sale two years from today, with an
additional 28.3 million shares being eligible for sale every six months
thereafter, so that all of the shares will be freely tradable after
four years. When the shares are ultimately sold, it is possible that
additional gain or loss will be reported. |
