Taiwan-based Siliconware Precision Industries (SPIL) has canceled a scheduled provisional shareholder meeting to seek approval for its planned alliance with China's Tsinghua Unigroup, and agreed to evaluate a proposal submitted by rival Advanced Semiconductor Engineering (ASE) to acquire all outstanding SPIL shares in cash.

Nevertheless, SPIL pointed out two conditions that have to be made in order to enable the company to start its evaluation on ASE's takeover proposal. ASE has to terminate its planned tender offer to buy more SPIL common shares traded in Taipei and the NYC, and both parties should negotiate on the basis of mutually agreed terms, SPIL said.

"If ASE immediately ceases its second hostile tender offer to demonstrate good will, the company is willing to proceed with evaluation and negotiation of ASE's proposal to use a share swap, with cash as consideration, to acquire 100% of the shares of the company," SPIL noted in a statement.

In the statement, SPIL also detailed its concerns regarding the rights and interests of the company's employees, and shareholders' equity interests, as well as anti-trust concerns, and expects ASE to respond to them by January 4, 2016, so that further negotiations could start.

SPIL was originally scheduled to hold a provisional shareholders meeting on January 28, seeking approval for its planned private placement and strategic alliance with Tsinghua Unigroup.

According to an agreement between SPIL and Tsinghua Unigroup, Tsinghua Unigroup would subscribe to new shares of SPIL priced at NT$55 per unit and own 24.9% of SPIL after the deal closes.

ASE, which previously completed its unsolicited offer for SPIL shares, has disclosed plans to launch another tender offer to acquire more shares of SPIL which will bring its total ownership interest in the fellow packaging and testing company to 49.71%. ASE offered to buy an additional 770 million SPIL shares at NT$55 each, the same price offered to Tsinghua Unigroup.

Before ASE unveiled the tender offer for more SPIL shares, ASE submitted a proposal to acquire all outstanding shares of SPIL for NT$55 each.