Advanced Semiconductor Issues Response To SPIL's Letter To Shareholders

(RTTNews) - Advanced Semiconductor Engineering, Inc. (ASX) urged Siliconware shareholders to attend the EGM scheduled to be held on October 15, 2015 and vote against the "Amendment to the Articles of Incorporation" (to approve the increase in authorized share capital) and the "Amendment to the Procedures for Acquisition and Disposition Procedures". The company said SPIL's Board is still unable to deny the fact that after the Hon Hai Share Exchange, SPIL shareholders' shareholding will be significantly diluted.

Advanced Semiconductor believes it wasn't necessary for SPIL's Board to propose to amend its Articles of Incorporation to significantly increase its authorized capital to 5 billion shares when there will already be ample headroom if SPIL increases its authorized capital from 3.6 billion shares to approximately 4.2 billion shares to effect the proposed share exchange with Hon Hai. The company said, if the extraordinary shareholders' meeting approves the increase of SPIL's authorized capital to 5 billion shares, SPIL's Board may, without first obtaining approval from shareholders at a shareholders' meeting, issue up to approximately 800 million additional shares to other companies.

Advanced Semiconductor said, if the proposed 5 billion shares are fully issued, SPIL's Board may decide to issue the new shares through share swaps with other companies up to approximately 52.56% of the issued and outstanding share capital of SPIL.