Chi Mei Optoelectronics plans share sale

Chi Mei Optoelectronics Corp (奇美電子), Taiwan's second-largest maker of flat-panel displays used in computers and televisions, plans to sell shares to investors in Taiwan and overseas as it expands capacity.

Shareholders yesterday approved proposals to sell as many as 2.5 billion preferred shares in Taiwan and 500 million common shares to overseas investors in the form of global depositary receipts, the Tainan-based company said in a statement to the Taiwan Stock Exchange Corp.

The proposed share sales come as Chi Mei plans to invest NT$35 billion (US$1.12 billion) to build a new plant. The company is expanding its production capacity to compete with rivals including AU Optronics Corp (友達光電) and LG Philips LCD Co, based in South Korea.

Chi Mei shares gained 1 percent to close at NT$51.30 yesterday, while AU Optronics up 1.7 percent to NT$53.70.