1.Date of occurrence of the event:2023/01/17
2.Company name:Silicon Application Corp.
3.Relationship to the Company (please enter ”head office” or
”subsidiaries”):subsidiaries
4.Reciprocal shareholding ratios:100% owned by WPG Holdings Limited
5.Cause of occurrence:N/A
6.Countermeasures:N/A
7.Any other matters that need to be specified (the information disclosure
also meets the requirements of Article 7, subparagraph 9 of the Securities
and Exchange Act Enforcement Rules, which brings forth a significant impact
on shareholders rights or the price of the securities on public companies.):
To further expand the business of passive components, as approved by the
audit committee and the board of directors of WPG Holdings Limited, Silicon
Application Corp. (hereinafter “SAC”), a subsidiary of WPG Holdings
Limited, held the board of directors meeting today (Jan 17, 2023) and
resolved to acquire the shareholding of group companies of VSELL group (an
electronic components distributor, hereinafter “VSELL”) and certain
operating assets of VSELL at the aggregate consideration in cash of NTD 650
million, and will further contribute in cash to such group companies to
enrich their working capital. After the abovementioned investment, WPG group
shall further thrive in the business of passive components in Greater China.
The transaction is commenced with a key strategy to integrate the remarkable
management teams of SAC and VSELL and enhance the overall industrial
competitiveness, thereby optimizing the complementary product profiles, so
as to further expand SAC and VSELL’s overall business in the distribution
of passive components. VSELL was incorporated in 1994. The annual turnover
of VSELL in 2022 exceeded NTD 3,000 million, with headcount of around 64
employees. VSELL has been devoted into the distribution of passive components
and has a competitive edge in developing design-in businesses in Greater
China with a diversified product profile in connectors, cables, fasteners,
and electromagnetic shielding materials. With the integration of both
management teams of SAC and VSELL and the working capital contributed by SAC,
VSELL shall be rendered a capacity for a larger business scale; whereas SAC
shall obtain market accesses into the distribution of automobile connectors
and further diversified the product pipelines of WPG group.