Fri, Dec 28, 2012 - Page 13 News List

Nan Ya Plastics to sell Formosa Petrochemical shares

By Camaron Kao  /  Staff reporter

Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics maker, yesterday announced plans to sell 190.52 million shares of affiliate Formosa Petrochemical Corp (台塑石化) by the end of the second quarter next year.

The company said in a filing to the Taiwan Stock Exchange that its board of directors had approved the plan. Nan Ya’s announcement makes it the third unit under the nation’s biggest diversified industrial group, Formosa Plastics Group (FPG, 台塑集團), to declare plans to sell Formosa Petrochemical shares over the past seven days.

“Nan Ya Plastics’ action is part of the plan to have the company, Formosa Plastics Corp (台塑) and Formosa Chemicals & Fibre Corp (台灣化纖) each sell 2 percent of Formosa Petrochemical shares by the end of the second quarter next year,” Nan Ya general manager Wu Chia-chau (吳嘉昭) said by telephone.

Formosa Plastics Corp, the nation’s largest maker of polyvinyl chloride, and Formosa Chemicals, which produces aromatics and styrenics, had earlier announced plans to each sell 190.52 million Formosa Petrochemical shares by June 30.

Based on Formosa Petrochemicals’ closing share price of NT$84.80 yesterday, the three companies are expected to raise up to NT$48.47 billion (US$1.67 billion) in fresh funds by selling a total of 571.56 million shares.

Proceeds from the sale will be used to finance the construction of a steel mill in the Vung Ang Economic Zone in Vietnam, the group’s first venture in the steel industry, and other potential future investment overseas, as well as to bridge its financial gap, Wu said, without elaborating.

Nan Ya’s board yesterday also approved a plan to sell 500 million shares of Nanya Technology Corp (南亞科技), the nation’s biggest DRAM chipmaker.

“The 500 million shares are for Nanya Technology’s suppliers that did not qualify for [today’s] private placement,” Wu said.

On Dec. 14, Nanya Technology said it planned to raise NT$9 billion by selling up to 5.29 billion common shares at NT$1.70 per share through a private placement — with Formosa Plastics, Nan Ya Plastics, Formosa Chemicals and Formosa Petrochemical each subscribing to 1.32 billion shares.

Proceeds from the sale will be used to improve its financial structure, repay bank loans and replenish its operating funds.

Nan Ya Plastics added that it would offer loans of NT$27.1 billion to Nanya Technology and NT$7 billion to Inotera Memories Inc (華亞科技) by the first quarter of next year, as a show of support for the two chipmakers.

“These loans are just regular lending based on the needs of the two companies,” Wu said.

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