THSRC expects to raise billions from share sale

Taiwan High Speed Rail Corp (THSRC, 台灣高鐵), which is developing the country's fast train service, plans to raise NT$7.5 billion (US$237 million) selling preferred shares before the end of September, four months later than scheduled.

The company expects to raise NT$5.5 billion by the end of July and another NT$2 billion two months later, Ted Chia (賈先德), THSRC assistant vice president, said in a telephone interview in Taipei yesterday.

The company had planned to complete the sale before the end of May.

"We've approached certain investors for the shares," Chia said. Possible buyers include manufacturers, technology companies and insurers, he said, declining to name any potential buyers.

The stake sale will help provide funds needed to complete the NT$462.1 billion project. The 345km rail is scheduled to begin service by the end of October, running a so-called bullet train service from Taipei to Kaohsiung.

The company in May delayed the stake sale, saying it had enough capital after receiving about NT$6 billion from a share sale in April, Chia said.

The sale in September will complete the company's plan to sell 1.5 billion preferred shares, approved by shareholders on March 4.

The rail company set the new stock sale schedule after discussions with its lenders, Chia said. THSRC signed a syndicated loan of NT$323.3 billion with 25 Taiwan banks in 2000.

The company plans to sell 2.4 billion common shares in November and another 800 million shares in June next year, Chia said.

The company hasn't applied to list its shares on the Taiwan Stock Exchange and doesn't have a timetable for listing, he added.

The project was 86 percent completed, as of end of May, said Arthur Chiang (江金山), THSRC vice president.

The company is still aiming to start service on schedule by the end of October, he said and denied a report saying the company will delay the start of services.

"Our contractors and we are still working to achieve the goal" to start services on schedule, Chiang said.

Japan's Asahi daily reported yesterday that opening of the rail line would be delayed until after August next year.

The newspaper said the main reasons for the delay were difficulties with mechanical and electrical systems.