Shareholders OK Chimei fundraising to improve finances

By Lisa Wang  /  Staff reporter

Thu, Nov 15, 2012 - Page 13

Chimei Innolux Corp (奇美電子) yesterday said shareholders had approved a new fund-raising plan to issue up to 1.63 billion common shares in the form of global depositary receipts with the aim of improving the company’s financial structure.

Based on Chimei Innolux’s closing share price of NT$11.2 yesterday, the nation’s top LCD panel maker said it expected to complete the NT$18.26 billion (US$628.9 million) fund-raising project in two to three months.

In September, Chimei Innolux raised NT$5.4 billion by selling 600 million new common shares to existing shareholders at NT$9 per share.

It said it had improved its net debt-to-shareholder-equity ratio to 134.3 percent in the third quarter from the second quarter’s 153.2 percent.

Chief executive officer Tuan Hsin-chien (段行建) said he expected the company’s total capacity to grow 5 percent next year through enhanced production efficiency, or by mass producing a single product at a factory instead of building a new production line, a Unique Satellite TV report said.

The firm plans to add 150,000m2 a month to its production capacity next year, which would be equal to a fifth-generation production line, to increase its current monthly capacity of 3 million square meters, Tuan said.

In yesterday’s meeting, shareholders also voted to change the company name to Innolux Corp (群創) because the company’s biggest stakeholder, Chimei Corp (奇美實業), has decided to stop sending representatives to the board, reducing itself to just an equity investor.

Meanwhile, Tuan said speculation about potential investment from Chinese panel makers or TV brands was groundless as no substantial progress on the issue had been made.