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Chunghwa chooses ADR underwriters

Chunghwa Telecom Co (中華電信), the nation's largest provider of telephone services, selected Goldman Sachs Group Inc, UBS AG and Morgan Stanley to arrange an American depositary receipt sale (ADR), it said in an e-mailed statement released late on Sunday.

Chunghwa Telecom, based in Taipei, said last month it planned to sell an 8 percent stake, or 773.4 million shares, owned by the government and shareholder Taiwan Mobile Co (台灣大哥大) to overseas and local investors. The stake is valued at NT$42.15 billion (US$1.28 billion), based on Chunghwa Telecom's closing price of NT$54.50 yesterday.

The stock has fallen 2.3 percent this year, compared with a 4 percent gain in the benchmark TAIEX Index.

The overseas and domestic sales will take place simultaneously, with different pricings determined by a government committee, Chunghwa said in the statement.

The domestic sale will be conducted in the form of an auction after markets close, the company said, without providing details on the number of shares it will sell locally and overseas or when the sales will take place.

The stake to be sold by Chunghwa comprises 7.4 percent owned by the government and Taiwan Mobile's 0.6 percent. Chunghwa Telecom's board in June approved a plan to sell ADRs on behalf of the government, which owns 41 percent of the company and needs funds to cover rising debt.
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