Taiwan's government raised US$321 million from the sale of 20 million US-traded Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares to Goldman Sachs Group Inc, a Goldman official said.
The news confirms a Taipei Times report last week that surveyed four securities analysts who agreed that government-run stock funds plan to sell off Taiwan bluechip company shares in the US to replenish coffers.
Shares in the world's biggest made-to-order chipmaker were sold to Goldman at US$16.05 per share yesterday, a 0.7 percent discount to the closing price of TSMC's US-traded shares Monday.
The share sale was earlier reported on the FinanceAsia.com Web site.
Proceeds from the TSMC share sale will help fund government spending, crimped by a budget deficit of NT$195 billion (US$5.7 billion), close to the limit of 15 percent of total expenditure.
Taiwan's government has about a 12 percent stake in TSMC.
Goldman will sell the shares to investors and may keep some for investment purposes.
TSMC's US-traded shares fell 5.9 percent to US$15.22 yesterday. The company's Taiwan-traded shares rose 1.3 percent to NT$75.50.
TSMC's US shares have traded at a premium of as high as 75 percent to the Taiwan shares this year. US-based investors, who lack a license to buy the Taiwan-traded shares, purchase the US shares, which are the equivalent of five Taiwan shares.
Merrill Lynch & Co managed the Development Fund's (
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
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