Taiwan Business Quick Take

Staff writer

Thu, Apr 14, 2016 - Page 14

ACQUISITIONS

FTC approves Micron plan

The Fair Trade Commission (FTC) yesterday approved Micron Technology Inc’s plan to purchase the remaining 67 percent stake in its Taiwanese DRAM arm, Inotera Memories Inc (華亞科技), in a deal worth about NT$130 billion (US$4.02 billion). The transaction is expected to be completed in the middle of this year and after that Inotera will become a wholly owned subsidiary of Micron Semiconductor Taiwan Co, a unit of the US company. Micron, the world’s No. 3 DRAM chipmaker, is offering NT$30 per common share to acquire all of the issued and outstanding shares of Inotera, as it aims to boost its long-term operational efficiency.

ACQUISITIONS

Hon Hai eyes TeleEye

Hon Hai Precision Industry Co (鴻海精密) yesterday said it is to spend HK$240.33 million (US$30.98 million) to acquire a 50.07 percent stake in TeleEye Holdings Ltd (千里眼控股) — a Hong Kong-based surveillance camera applications supplier. Hon Hai is to purchase 419.06 million shares worth HK$0.55 per share on the open market after authorities in Hong Kong approved its planned investment, the company said in a filing with the Taiwan Stock Exchange. Hon Hai said the investment is part of its efforts to develop its new business, without elaborating.

INVESTMENT

Board approves new shares

Taiwan Land Development Corp (台灣土地開發) yesterday said its board has decided to issue up to 80 million new shares to boost its working capital. The company said in a stock exchange filing that it plans to issue the new shares at NT$15 per share via a private placement at an undecided date within the next 12 months. The goal of the move is to raise funds for long-term development and strategic investment purposes, the company said.

SHIPPING

New service to be launched

Wan Hai Lines Ltd (萬海航運), the nation’s third-largest container shipping company in terms of fleet size, yesterday announced to expand further on its present intensive intra-Asia network by launching a China-Manila-Thailand Service (CMT) with a maiden voyage on April 26. The joint venture service with Japan’s Interasia Lines Ltd (IAL) is to see Wan Hai operate two vessels of 700 20-foot equivalent units (TEU) type and IAL with one 700-TEU vessel. Wan Hai said the launch of the CMT service will enhance direct connections between China and ASEAN countries and among ASEAN countries.

AVIATION

Tigerair to open new route

Tigerair Taiwan (台灣虎航), a budget airline joint venture between China Airlines Ltd (中華航空) and Singapore’s Tiger Airways, yesterday said it is opening a flight route serving Sendai in Japan. The company said it will launch the Taoyuan-Sendai route beginning on June 29, making it the first budget airline to offer direct flights to Japan’s Tohoku Region.

INVESTMENT

Companies record Q1 dip

Taiwanese companies listed on the nation’s main bourse saw their total consolidated revenue contract by 1.21 percent year-on-year to NT$2.3 trillion last month, according to a statement by Taiwan Stock Exchange Corp on Tuesday. The decline in last month’s sales was attributed to weakening performance of the optoelectronics sector, oil and gas industries, as well as communication and networking companies. During the first quarter of the year, listed companies’ total sales were NT$6.3 trillion, down 4.8 percent year-on-year.