TAIPEI -- Advanced Semiconductor Engineering's board of directors has passed resolutions to spin off of its subsidiary Universal Scientific Industrial.

ASE said it would integrate the business activities of USI with those of other business entities within the group as necessary in order to improve operational efficiency.

USI will issue approximately 1 billion new shares at the ratio of 1,000 existing USI shares to 609.2743815 new shares. At the same time, USI plans to undergo a capital reduction of NTD 16,013 million by reducing 975.62902474 shares per 1,000 shares (a reduction ratio of 97.56%). After the capital reduction, the share capital of USI will be reduced from NTD 16,413 million to NTD 400 million.

The board expects the deals to take place March 6.

ASE holds a total of 1,625 million common shares in USI, a 99.01% shareholding. After the record date of the USI spin-off and capital reduction, ASE's shareholding is expected to decrease to 39.603 million shares with the same 99.01% shareholding. At the same time, ASE will acquire 990 million shares in New USI, with a 99.01% shareholding. The spinoff is part of the internal structural adjustments in the ASE group and will not have impact on the financial position and business operation of ASE.

USI was established in 1974 and is one of the world's largest providers of electronics manufacturing services.

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