Far EasTone Telecommunications Co (遠傳電信), the nation's second-biggest mobile service provider, said yesterday that it plans to pay NT$495.9 million (US$15 million) to buy a stake in an Internet service provider that is currently part of the Uni-President Group (統一集團).
Far EasTone said in a filing to the Taiwan Stock Exchange yesterday that it would pay NT$13.6 a share to acquire 36.5 million shares of unlisted Q-ware Systems and Services Corp (
The transaction will close on May 16, and Q-ware will then spin off its wireless division, in which Far EasTone will control a 51 percent stake.
Currently owned by President Chain Store Corp (
"The partnership was formed to improve operational efficiency and industrial competitiveness. This will enable us to bring in new technology from Far EasTone, as well as its know-how on managing a wireless business," Uni-President Enterprises, the nation's largest food conglomerate, said in a statement yesterday.
Q-ware has been struggling to boost its Wifly subscription base as users have been slow to embrace the citywide wireless service because of issues such as high charges and unstable signals.
Up to last month, Wifly had only gained 110,000 subscribers since starting formal operations in January last year. But it hopes to boost the figure to 300,000 by the year-end by enlisting more commercial users.
Wifly currently has more than 4,000 hotspots, or wireless areas, located at fast food and beverage chains including Burger King, MOS Burger, QK Coffee and Starbucks, as well as at 7-Eleven convenience stores and MRT stations.
Chang Sheng (
The company said more details would be announced in May.
The acquisition is also expected to benefit Far EasTone in terms of subscriber base and revenues, which have fallen as a result of a sharp decline in pre-paid card subscribers.
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