Chip equipment maker ASMPT ends takeover talks with potential suitor

(Reuters) – Hong Kong-listed ASMPT said on Monday it had ended takeover talks with a potential suitor, curbing media speculation about a possible privatization of the semiconductor and electronics equipment maker.

Last month, the company said it had received a takeover offer, but did not provide financial details or details of the potential buyer.

Global investment firm KKR & Co is said to be considering a takeover bid for ASMPT, according to a Bloomberg News report on October 2.

Shares of ASMPT rose more than 11% to a three-month high on the day Bloomberg News first reported the news and closed about 3% higher. However, they have since fallen by more than 20%.

The company’s shares closed 4% lower at HK$79.9 on Monday, their lowest since late September.

Netherlands-based semiconductor equipment maker ASM International NV, which holds around 25% of the company’s shares, has recently been urged by activist investors to sell its stake.

Media reports first surfaced in March 2023 that Hong Kong-based alternative investment firm PAG was among the companies that had expressed interest in privatizing ASMPT.

ASMPT is a major global provider of chip manufacturing technology and equipment. According to LSEG data, the market capitalization as of Friday’s close was 34.52 billion Hong Kong dollars ($4.44 billion).

($1 = 7.7734 Hong Kong dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Varun HK)