February 25, 2024
Loans

WT Group gets US$1.9 billion syndicated loan for acquisition


WT Group, the fourth-largest semiconductor component distributor in the world, has signed a contract with banks to obtain half of the capital needed to acquire its Canadian counterpart, Future Electronics.

DBS Bank (Taiwan) and First Commercial Bank jointly announced to co-organize a five-year syndicated loan project for a total of NT$60 billion (US$1.9 billion) for WT Microelectronics and its subsidiary, Morrihan International (hereinafter referred to as “WT Group”), and have completed the signing of the contract recently.

According to the press release, This syndicated loan case is the largest for semiconductor component distributors in Taiwan in years, and a total of 14 financial institutions have responded enthusiastically to it, which is highly indicative of the industry and the loan market.

The WT Group announced in September 2023 that it would acquire Future Electronics Inc., which is the world’s seventh-largest semiconductor component distributor headquartered in Canada, for US$3.8 billion in cash to accelerate its entrance to the semiconductor distribution market in Europe and the United States, and to deepen its global distribution.

The transaction is expected to be completed in the first half of 2024 after obtaining approval from the competent authorities in each country. The amount raised from this loan facility will mainly be used to





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *