Hsinchu-based Prime View International Co (元太科技), supplier for Amazon.com’s Kindle electronic-book reader, is prepared to pay an additional 120 million shares for its planned acquisition of E Ink Corp since the value of the US company rose.
The value of the shares is equivalent to US$180 million, Prime View president Fu Yu-hsuan (傅幼軒) told a press briefing yesterday.
PHOTO: CHO YI-CHUN, TAIPEI TIMES
Prime View is a leading liquid-crystal-display (LCD) panel maker for portable devices. It also produces electronic paper displays, which form the core component of electronic-book readers.
The company said in June that it planned to acquire the closely held E Ink, maker of electronic ink, for US$215 million.
“When we discussed the deal last year, E Ink was losing money, and since the company has turned profitable this year, the company’s value has increased,” chairman Scott Liu (劉思誠) told the same briefing.
Prime View plans to give E Ink 30 million shares when its stock price hits NT$50, 30 million shares when the price rises to NT$60, 30 million at NT$70 and another 30 million when the stock reaches NT$80, Liu said.
Liu said the company also planned to issue convertible preferred shares to E Ink shareholders when the deal closes, and E Ink shareholders can convert the preferred shares to common shares once Prime View’s stock price hits the targets under the revised merger deal.
However, the company will cancel the preferred share plan if its stock price fails to reach the targets over the next three years, he added.
Prime View is scheduled to hold an ad hoc shareholder meeting on Nov. 18 to approve the revised merger deal, the company said in a stock exchange filing.
Shares of Prime View rose 1.51 percent to NT$50.5 on the GRETAI Securities Market before the press briefing. The stock has surged 245.89 percent so far this year, compared with a 94.17 percent rise on the over-the-counter index over the same period.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to