Wed, Jan 15, 2020 - Page 11 News List

Capital injection boosts Taiwan Star’s 5G hopes

By Lisa Wang  /  Staff reporter

Taiwan Star Telecom Co (台灣之星) is to obtain a fresh capital injection of NT$342 million (US$11.42 million) from its investors, including the nation’s biggest private fund, KHL Capital (達勝投資), as it looks to continue to compete in the nation’s 5G spectrum auction.

Local telecoms are competing fiercely for chunks of the 5G spectrum, with total bids reaching NT$132.517 billion as of the end of the 250th session yesterday.

The bids are three times higher than the floor price of NT$44 billion set by the National Communications Commission, making the nation’s 5G spectrum one of the most expensive in the world.

“KHL has decided to invest in Taiwan Star via a subscription for the company’s common shares and corporate bonds, as it is bullish about 5G prospects and the huge business opportunities it brings,” Taiwan Star said in a statement on Monday.

KHL is to become one of Taiwan Star’s top three shareholders along with Ting Hsin International Group (頂新集團) and Cathay Real Estate Development Co (國泰建設).

Taiwan Star said the new capital would help boosts its financial strength and give it more leeway to vie for 5G spectrum bandwidth in the auction.

The firm last year raised NT$4 billion via a rights issue and obtained NT$5.1 billion in loans.

KHL, cofounded by fund chairman Gary Kuo (郭冠群), has agreed to subscribe to 162 million new shares and NT$1.8 billion in corporate bonds via its investment arm KHL Investment I Ltd (達勝壹甲壹投資) and two other local funds.

KHL Capital is the largest shareholder of the nation’s biggest cable TV operator, China Network Systems Co (CNS, 中嘉網路).

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