Commenting on this investment that increases once again ASM International's ownership in ASMPT, Mr. Arthur H. del Prado, CEO of ASM International NV, stated that: "we believe that increasing our shareholding in ASMPT is one of the best strategic and financial investments available to ASM International in our industry'.
"ASMPT is leading the industry thrust to manufacturing automation in the assembly field. Its rapid expansion, driven by superior technology and competitive positioning, has created excellent commercial prospects for the foreseeable future", Mr. del Prado said and he continued: "Innovative process steps may increasingly impact the technology roadmaps in both the front-end and back-end segments of the semiconductor equipment market through cross fertilization. Through our long-time presence in these segments, ASM International is uniquely placed to play a leading role in this innovative process."
The financing of these purchases comes primarily from a US$ 75 million Collateral Loan Facility, of which US$ 69 million has been taken up and from the Company's cash resources. The two-year Loan carries a three-month interbank interest rate plus 185 basis points and has a quarterly redemption schedule.
At the same time, the Company entered into a US$ 140 million Structured Equity Line, which, over a two-year period, enables the Company to privately issue, fully underwritten shares at market price at the time of issue minus a small discount. The proceeds of these shares can be applied to repay the Loan as well as to fund the Company's growth. CIBC World Markets Corporation arranged both the Collateral Loan Facility and the Structured Equity Line.
The impact of the investment on ASM International's income in the year 2000, before amortization of the purchased goodwill, is expected to be neutral.
ASM Pacific Technology, Ltd., headquartered in Hong Kong and with operations in Shenzhen, China, Malaysia, Hong Kong and Singapore, manufactures a broad line of assembly and packaging or back-end equipment for the semiconductor industry. ASM Pacific Technology common shares are traded on the Hong Kong Stock Exchange under the symbol 522.
About ASM
ASM International is headquartered in Bilthoven, the Netherlands. ASM International's subsidiaries design, develop, manufacture and market equipment and materials used to produce semiconductor devices. ASM International and its subsidiaries provide production solutions for the wafer-processing, assembly and packaging segments through their facilities in the United States, Europe, Japan and Asia. ASM International's common shares trade on the NASDAQ National Market under the symbol “ASMI” and on the Euronext Stock Exchange in Amsterdam under the symbol “ASM.” More information on ASM can be found on its website at http://www.asm.com
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Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: The statements regarding orders, earnings development and the effects of research and new products on ASM’s future, and other matters discussed in this statement, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions in the semiconductor industry, currency fluctuations, the timing of significant orders, market acceptance of new products, competitive factors, risk factors related to litigation and other risks indicated in filings from time to time with the SEC and Stock Exchange Authorities.