Sat, Feb 03, 2007 - Page 11 News List

Shares of Formosa International close limit-up on return

By Jackie Lin  /  STAFF REPORTER

Shares of Formosa International Hotels Corp (晶華酒店) closed limit-up at NT$387.50 (US$11.80) on the local bourse yesterday, the first day the shares had resumed trading following the company's capital reduction.

The new shares started the day on the Taiwan Stock Exchange yesterday at NT$362.18 per share.

The firm, which runs the five-star Grand Formosa Regent Taipei, announced that it would reduce its capital by NT$1.56 billion, or 72 percent, to NT$600 million last August, with net value reaching NT$49 per share.

To carry out share conversion and issuance procedures, the company's shares were suspended on the exchange for nine days, from Jan. 22 until Thursday.

This was the second time the company has reduced capital and returned cash to shareholders, the result of the firm's strategy to expand restaurant operations rather than purchasing land to build more hotels.

The first time Formosa International announced a capital reduction was in March 2002, when it decided to cut its capital by NT$2.16 billion, or 50 percent, making it the first domestic company to carry out a capital reduction program.

Formosa International booked revenues of NT$2.65 billion last year with after-tax profits expected to top NT$803 million.

Its business income this year is estimated to reach NT$2.9 billion after the company announced last month that it planned to acquire Domino's Pizza Inc's local and Beijing units.

Net profits are expected to top NT$902 million, with earnings per share expected to reach NT$15, the company said.

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