Taiwanese mobile operator Vibo Telecom will reportedly be sold to Taiwan Star Cellular, a subsidiary of conglomerate Ting Hsin International Group.
Vibo will first offer a rights issue to its current owners, Kinpo Electronics and Compal…
Taiwanese mobile operator Vibo Telecom will reportedly be sold to Taiwan Star Cellular, a subsidiary of conglomerate Ting Hsin International Group.
Vibo will first offer a rights issue to its current owners, Kinpo Electronics and Compal Electronics, which will put up to NT$3.6bn (US$121m) each into the business to clear its debts, state news agency CNA reported.
Kinpo and Compal will then transfer their shares to Taiwan Star, and spend US$59m each investing in Taiwan Star’s five-year corporate bonds.
The sellers will then each receive 100 million new shares in Taiwan Star, giving them both 4% stakes in Vibo’s new owner. The share swap will happen before the end of April 2014, according to the report.
Vibo operates a 3G network and has a reported 1.8 million subscribers and 6,700 base stations.
Taiwan Star, a newcomer in the country’s crowded mobile industry, recently secured a 4G licence. The hotly-contested auction, which saw six licences being issued, raised about US$4bn – more than three times the targeted revenues.
