Taiwanese operator Chunghwa Telecom has received board approval to participate in China Airlines’ secondary equity offering up to a maximum amount of TWD 3.5 billion, at the issue price of TWD 11.73 per share, after confirming China Aviation Development Foundation’s (CADF) participation in the offering as aforementioned. However, if China Airlines’ average closing price for the five business days prior to the payment date is lower than TWD 10.57, which equates to the airline’s net book value per share in the third quarter 2011, Chunghwa will not participate in the offering. China Airlines’ closing price for 16 January is TWD 14.30. The company plans to extend the reach of its cloud services business to include tourism, one of the six emerging industries, through equity investment and alliances. The alliance with China Airlines could enable Chunghwa Telecom to use China Airlines’ expertise in both the airline and tourism industries, and position Chunghwa Telecom to expand the scope of its ICT business to tourism and related businesses. The outstanding shares in China Airlines will total 5.2 billion after this offering. Chunghwa Telecom is expected to acquire a maximum of 299 million shares, accounting for 5.74 percent of China Airlines shares after the offering.

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