Chi Mei Optoelectronics Corp (奇美光電) sold US$225 million of bonds convertible into its stock, said the sale's manager Morgan Stanley, as Taiwan's second-largest maker of flat-panel displays invests in new factories and machinery.
The bonds mature in five years and don't pay interest, Morgan Stanley said in a statement. They can be converted into the display maker's stock at NT$31.61 apiece, a 6.4 percent premium to their close yesterday, the statement said.
Chi Mei and local rivals Quanta Display Inc (廣輝電子) and Hannstar Display Corp (瀚宇彩晶) are investing in new factories to keep up with South Korea's Samsung Electronics and LG.Philips LCD Co, the world's two biggest makers of flat-panel displays.
Quanta Display is a flat-panel venture controlled by Japan's Sharp Corp and Quanta Computer Inc (
Hannstar raised US$150 million two days ago selling similar bonds. It sold one fifth more than first planned to meet demand.
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