Benzinga | Dec 1, 2021 12:49PM EST

ASE Tech Agrees To Sell Shares, Equity In GAPT Holding For $1.5B

* ASE Technology Holding Co Ltd (NYSE:ASX) and Beijing Wise Road Asset Management agreed to sell shares and equity interests in GAPT Holding to Wise Road Capital for a cash consideration of $1.46 billion.

* ASE shall transfer the subject shares and equity interests in each target company to Wise Road Capital.

* Wise Road Capital shall pay $1.08 billion plus aggregated cash balance and minus aggregated outstanding debt balance of the target companies will be paid upon the completion date.

* Wise Road Capital will also pay $380 million on the first business day six months after completion.

* ASE sees a tax effected gain of $630 million from the transaction.

* ASE will improve its overall competitive edge by optimizing its strategy and resource allocation in China while further enhancing its investment in advanced technology development and expanding its leading-edge capacities within Taiwan.

* Price Action: ASX shares traded higher by 6.91% at $7.82 on the last check Wednesday.