Doesn't ALSC own approximately the same % of USC as S3?
Tuesday June 15, 7:33 am Eastern Time
Company Press Release
S3's USC Holdings Worth An Estimated $500 Million
S3 Expected to Receive One UMC Share for Every One of its 252 Million Shares of USC Stock
SANTA CLARA, Calif.--(BUSINESS WIRE)--June 15, 1999--S3® Incorporated (Nasdaq:SIII - news) today announced that it has been informed by United Microelectronics Corporation (UMC) that S3 should receive approximately 252 million shares of UMC stock by the end of 1999 -- which is worth approximately $500 million US based on today's current NT dollar value and UMC trading price.
S3 would receive the 252 million UMC shares through a 1:1 stock exchange of S3's current 252 million United Semiconductor Corporation (USC) shares.
This expected transaction is a result of UMC's foundry consolidation plans announced yesterday whereby USC, United Integrated Circuits Corporation (UICC), United Silicon Incorporated (USIC) and UTEK Semiconductor Corporation (UTEK) (Taiwan Stock Exchange:2339), will be merged into UMC (Taiwan Stock Exchange:2303).
The company expects that the UMC shares it receives will be eligible for trading on the Taiwan stock exchange.
''This represents substantial opportunities for the company in terms of growing our existing graphics business through increased R&D as well as entering new markets through technology licenses, mergers, acquisitions or other strategic business options,'' said Ken Potashner, president and CEO of S3 Incorporated.
''Building on the success of our Savage4 and Savage mobile products and design wins with top PC OEMs, we intend to fully exploit this opportunity in ways intended to sustain company growth and enhance shareholder value.''
Said Bob Tsao, Chairman of UMC Group, ''This reorganization focuses our Taiwan-based fabs into a single, more financially-efficient and competitive organization, setting the stage to be the largest, most profitable, and most technologically advanced pure-play foundry in the world.''
Details about the Transaction
In the UMC reorganization, UMC proposes to exchange one share of UMC stock for each USC share that S3 currently owns. As S3 currently owns 252 million shares of USC, this will result in the transfer of 252 million UMC shares of stock to S3. The transaction is subject to shareholder approval. UMC expects to submit the transaction to shareholders by the end of July 1999.
The final share transfer is expected to be completed before the end of 1999.
About UMC
UMC Group is a world leading semiconductor foundry group consisting of United Microelectronics Corp. (UMC), United Semiconductor Corp. (USC), United Integrated Circuits Corp. (UICC), United Silicon, Inc. (USIC), UTEK Semiconductor Corp. (UTEK), and the first dedicated foundry in Japan, Nippon Foundry Inc. (NFI).
The group leads the dedicated foundry industry in value-added design support with its Gold IP(TM) program. In 1998, UMC Group's L250 (0.25um) and L220 (0.22um) process technologies set the foundry industry benchmark for production volumes, capacity and yields in very deep sub-micron technology.
Also, in 1998, two UMC Group customers introduced 0.18um prototype products, and in early 1999, 0.18um process technology was production qualified with 1000 hour product reliability tests. In 1999, UMC Group will have production-ready 0.18um (L180) copper-interconnect technology.
The UMC Group Silicon Shuttle(SM) test-chip program enables library vendors, IP vendors and foundry customers to verify their designs in silicon at low or no cost. UMC Group companies are headquartered in Taiwan, with marketing and customer support offices located in the United States, Japan, and the Netherlands.
UMC Group (U.S.A.) offices are located at 788 Palomar Avenue, Sunnyvale, CA 94086, tel. 408/733-8881, fax 408/733-8090. The company's website address is www.umcgroup.com.
About S3 Incorporated
One of the largest suppliers of graphics and video accelerators in the world, S3 Incorporated has established itself as a market leader in technology excellence, core business strengths, strategic partnerships and worldwide reach. Building on these strengths, S3 is committed to delivering targeted products for the Personal Computer, Computing Integration and Consumer Appliance Markets.
The above amounts are based on UMC stock price on June 14, 1999 and current NT exchange rates. Except for historical information contained herein, the matters set forth in this press release, such as statements relating to the amount of US dollars receivable, the completion of the UMC reorganization, the timing of submission to UMC shareholders for approval, and the market for an liquidity of the UMC shares expected to be received, are forward looking statements that are subject to risks and uncertainties that may cause actual results to differ materially, including general economic and stock market conditions in Taiwan, exchange rate fluctuations, the timing and the likelihood of Taiwanese regulatory approvals, the existence of any trading restrictions that may be imposed on the UMC shares to be received, the approval of UMC shareholders, and other risks detailed from time to time in S3's SEC reports, including its Quarterly Report on Form 10-Q for the three months ended March 31, 1999.
Note to Editors: S3 is a registered trademark of S3 Incorporated. The S3 corporate logo is a trademark of S3 Incorporated. Other marks referenced herein are the property of their respective owners.
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$500 million for ALSC equates to approx. $12.50 per share!!!!!!!!!!! |
