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New Century Infocomm to reduce capital

Fixed-line operator New Century Infocomm Tech Co (新世紀資通) said yesterday that its board had approved a proposed 16 percent reduction in capital to dilute losses and asset impairment plan worth of NT$3.05 billion (US$92.1 million).

But the financial realignments would not be a precursor for a rumored merger with Far EasTone Telecommunications Co (遠傳電信), the nation's second-largest mobile carrier, New Century said in a statement following the board meeting.

The remarks came after the Chinese-language Economics Daily said New Century's major shareholders, Far Eastern Group (遠東集團) and Singaporean SingTel, had put the merger between the two Taiwanese telecom companies on the board's agenda amid recent consolidation in the nation's telecom landscape.

Singtel, which is majority owned by Temasek Holdings, holds a 24.5 percent stake in New Century.

New Century, which markets its services under the Sparq (速博) brand, said it planned to cut NT$7.5 billion from its NT$47.5 billion in capital.

The revised capital would be NT$4 billion, the minimum scale required for local firms to operate landline business.

The company suffered losses of NT$7.61 billion between 2001 and the first half of last year, its filings to the Taiwan Stock Exchange showed. New Century was established in 2000.
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