Shares of Yageo Corp (國巨) tumbled in Taipei trading yesterday after investors learned that a major shareholder had sold a sizeable stake in the nation’s biggest passive component supplier.
The stock fell 7.66 percent to close at NT$965, dipping below the NT$1,000 mark for the first time since June 25.
The unidentified shareholder sold 12 million shares at about NT$972 apiece, local media reports said.
The seller was an outside shareholder, the Chinese-language Economic Daily News quoted the company as saying.
External shareholders are not required to report share disposals to the company, it said.
Yageo emphasized that the seller is not a member of its management team, the report said.
The share sale is not expected to affect the company’s share price in the long run, because the transaction has already been completed, Yageo told the newspaper, adding that the shares’ new owners are subject to a 90-day lockout period.
The amount of shares sold is only a small part of Yageo’s daily turnover on the Taiwan Stock Exchange and proceeds from the sale are estimated at about NT$12.5 billion, media reports said.
The seller is believed to be an investment holding company set up by private equity firm KKR & Co and was once the single biggest shareholder of Yageo with a 8.37 percent stake, eclipsing Yageo chairman Pierre Chen’s (陳泰銘) 7.65 percent, the Chinese-language Apple Daily reported.
Boosted by a rising prices and a shortage of passive modules across technology sector supply chains, Yageo shares have jumped 173.37 percent since the beginning of this year and surged about 836 percent in the past year.
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