Taiwanese firm reaffirms China Mobile intentions
The board of Taiwanese telco Far EasTone Telecommunications has re-approved a plan to sell a 12% stake to China Mobile for around US$533m.
The firm had approved the deal in April 2009, but the transaction hit a regulatory stumbling block when Taiwan’s…
The board of Taiwanese telco Far EasTone Telecommunications has re-approved a plan to sell a 12% stake to China Mobile for around US$533m.
The firm had approved the deal in April 2009, but the transaction hit a regulatory stumbling block when Taiwan’s government said the sale contravened FDI laws.
Indeed, Taiwan is yet to approve the deal, saying that the island nation prohibits Chinese companies investing in its telecoms sector.
If approved, the deal will see up to 444.34 million new shares sold to China Mobile. If the deal goes ahead, it will be the first direct investment in Taiwan by a mainland Chinese company in 60 years.
Goldman Sachs and China International Capital Corporation acted as the financial advisers to China Mobile.
Far EasTone’s board had to re-approve the plan since, “the one-year period for private placement will soon expire,” the firm said.
Far EasTone is Taiwan’s third-largest mobile operator by revenue, after Chunghwa Telecom and Taiwan Mobile.
