Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) announced yesterday its fourth share repurchase plan in four years in a bid to increase earnings per share for shareholders, which in turn would help boost share prices.
The world’s top chip--packaging and testing company said it planned to buy back up to 34 million common shares, or 0.56 percent of total outstanding shares, according to a filing with the Taiwan Stock Exchange.
ASE said it planned to spend NT$19.44 billion (US$671.5 million) on the buyback plan and the company would repurchase shares at between NT$20 and NT$45 each from today until Oct. 15, the filing said.
This is the company’s fourth share buyback plan since the 2008 global financial crisis. ASE bought back and canceled 144 million shares in 2008, 73.94 million shares in 2009 and 37 million shares last year, company data showed.
Companies in the semiconductor sector have seen depressed share prices recently because of market concerns about constant inventory corrections in the third quarter, prompting MediaTek Inc (聯發科), Elan Microelectronics Corp’s (義隆電子) Silicon Integrated Systems (矽統科技) and King Yuan Electronics Co (京元電子) to implement share buybacks.
Alpha Networks Inc (明泰科技), a local maker of networking products and digital products, also said yesterday its board had agreed to spend as much as NT$3.1 billion to buy back 15 million common shares, or 3.15 percent of its total outstanding shares, on the open market.
The Hsinchu-based company said it would buy back shares at between NT$14 and NT$33.92 each from today until Oct 14, and would then transfer the repurchased shares to its employees, according to a company statement to the stock exchange.
ASE and Alpha Networks were among seven listed companies that announced share buybacks yesterday, after the Financial Supervisory Commission last week urged listed companies to conduct repurchases to boost investors’ confidence and buoy the local bourse.
ASE shares closed 4.81 percent higher at NT$27.25, while Alpha Networks rose limit-up to NT$21.4, compared with the TAIEX’s 2.39 percent rise yesterday.
The other five companies to announce buyback plans were high-speed network company ZyXEL Communications Corp (合勤科技), TFT equipment supplier Kenmec Mechanical Engineering Co (廣運機械), textile maker Tainan Enterprises Co (台南企業), Shuttle Inc (浩鑫), which makes computer motherboards and variable graphics cards, and Copartner Technology Corp (聯穎科技), which produces cables used in computer products, consumer electronics and networks.