Taiwan Mobile Co (台灣大哥大), the nation’s second-largest telecom, yesterday said it would acquire Taiwan Star Telecom Corp (台灣之星), the nation’s fourth-largest carrier, as the company aims to expand its customer base, and boost efficiency and competitiveness in the local market.
Taiwan Mobile aims to enlarge its spectrum of resources for greater economies of scale, the telecom said.
It also looks to achieve earnings and net-worth growth, as well as better customer satisfaction, the company said.
Photo: CNA
Taiwan Mobile, which had 7.11 million users as of the end of September, and Taiwan Star, which had 2.65 million users, would have a combined customer base of 9.76 million, the companies told a news conference in Taipei yesterday.
That would be higher than the 9.12 million users Far EasTone Telecommunications Co (遠傳電信) and Asia Pacific Telecom Co (亞太電信) have through a business partnership, the firms said.
Its combined customer base would come close to the 10.65 million users of Chunghwa Telecom Co (中華電信), the nation’s largest telecom, they said.
Photo: CNA
Taiwan Mobile said it is planning to issue 282.222 million new common shares that would be given to Taiwan Star shareholders in exchange for their shares.
The exchange ratio would be one Taiwan Star share for 0.04508 of its own shares, Taiwan Mobile said, adding that its calculations were based on Taiwan Star’s stock price as of June 30, expected merger synergies and comparable companies’ price-to-book ratios.
Taiwan Star would be dissolved after the merger, the companies said.
The deal is subject to approvals from a Taiwan Star shareholders’ meeting and regulatory authorities, they said.
The firms aim to complete the deal by Sept. 30 next year, but no later than Dec. 31, with the option of extensions if both parties agree, they said.
With the addition of Taiwan Star’s 5G licenses, Taiwan Mobile would own 100 megahertz of the 3.5 gigahertz frequency band, which would help speed up its promotion of 5G services to corporate clients, Taiwan Mobile president Jamie Lin (林之晨) said.
After the merger, Taiwan Mobile would terminate its 3G network and thousands of 4G base stations to avoid overlapping resources, which would help save significant amounts of energy, Lin said.
Taiwan Mobile would respect all contracts customers signed with Taiwan Star and hopes to gain support from regulators, he said.
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
People walk past advertising for a Syensqo chip at the Semicon Taiwan exhibition in Taipei yesterday.
NO BREAKTHROUGH? More substantial ‘deliverables,’ such as tariff reductions, would likely be saved for a meeting between Trump and Xi later this year, a trade expert said China launched two probes targeting the US semiconductor sector on Saturday ahead of talks between the two nations in Spain this week on trade, national security and the ownership of social media platform TikTok. China’s Ministry of Commerce announced an anti-dumping investigation into certain analog integrated circuits (ICs) imported from the US. The investigation is to target some commodity interface ICs and gate driver ICs, which are commonly made by US companies such as Texas Instruments Inc and ON Semiconductor Corp. The ministry also announced an anti-discrimination probe into US measures against China’s chip sector. US measures such as export curbs and tariffs
The US on Friday penalized two Chinese firms that acquired US chipmaking equipment for China’s top chipmaker, Semiconductor Manufacturing International Corp (SMIC, 中芯國際), including them among 32 entities that were added to the US Department of Commerce’s restricted trade list, a US government posting showed. Twenty-three of the 32 are in China. GMC Semiconductor Technology (Wuxi) Co (吉姆西半導體科技) and Jicun Semiconductor Technology (Shanghai) Co (吉存半導體科技) were placed on the list, formally known as the Entity List, for acquiring equipment for SMIC Northern Integrated Circuit Manufacturing (Beijing) Corp (中芯北方積體電路) and Semiconductor Manufacturing International (Beijing) Corp (中芯北京), the US Federal Register posting said. The
RSS