ChipMOS Bermuda To Merge With ChipMOS Taiwan

(RTTNews) - ChipMOS Technologies (Bermuda) LTD. (IMOS) Thursday announced that its 58.3 percent owned subsidiary ChiMOS Technologies Inc. or ChipMOS Bermuda will merge with ChipMOS Taiwan The surviving company will be ChipMOS Taiwan. The board of directors have approved the deal. Under the agreement, ChipMOS shareholders will receive $3.71 in cash, without interest, and 0.9355 American Depository Shares representing 18.71 shares of ChipMOS Taiwan in exchange for each ChipMOS common share of par value US$0.04 currently held. This would represent $19.77 in total consideration as of January 20, 2016 and a premium of 14.7 percent.

ChipMOS Taiwan's Board of Directors has also approved the establishment of a new U.S. American Depositary Receipt program to facilitate the merger and to foster ongoing market liquidity of its shares.

On closing of the merger, all common shares of ChipMOS and shares of ChipMOS Taiwan currently held by ChipMOS will be cancelled.

The merger is currently expected to close in the third quarter of 2016.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS and ChipMOS Taiwan said, "The proposed corporate restructuring is an important milestone for us.The completion of the merger will allow us to more efficiently operate as a singular entity and brand, placing ChipMOS in an even stronger position for future growth and development."