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ChipMOS slides on proposed pricing of Taiwanese subsidiary

  • ChipMOS shares (IMOS -4.2%) are sliding after the company announced it plans to sell 170M outstanding common shares of its majority-owned subsidiary, ChipMOS Taiwan, at a price of $0.67/share (NT$20).
  • The sale would represent 20.2% of outstanding shares of the subsidiary and reduce ChipMOS's stake to 533.3M shares (63.3% of shares outstanding). The move is part of ChipMOS's plan to list the subsidiary on the Taiwan Stock Exchange, which requires ChipMOS to own no more than 70% of outstanding shares.
  • The company expects the sale to close in mid-Oct.
Comments (4)
  • Valuable Insights
    , contributor
    Comments (485) | Send Message
     
    Buying opportunity. This eliminates the last major hurdle to a Taiwan listing and will result in a multiple in-line with Taiwan peers.
    26 Aug 2013, 12:46 PM Reply Like
  • AlphaScorpio85
    , contributor
    Comments (12) | Send Message
     
    Couldn't agree more Valuable Insights. I'm hoping that we see another wild day where I can get back in around $16.40. These next few weeks could definitely be the launching pad for $IMOS.
    26 Aug 2013, 06:38 PM Reply Like
  • TFCAB
    , contributor
    Comments (2008) | Send Message
     
    will a knowledgeable person pls explain the pricing; i thought it would be higher; long IMOS thanks
    26 Aug 2013, 07:37 PM Reply Like
  • Ed Porter
    , contributor
    Comments (697) | Send Message
     
    Yes, I also would appreciate any figures anyone can provide. The most recent pricing of ChipMOS Taiwan seems to suggest this line of stock is being sold around 20% lower than recent prices.

     

    But if I simplistically look at it as being a sale at USD 0.67 per share, and ChipMOS (Bermuda) own 700mio shares then that values them at USD 470mio approx, which is the market cap of IMOS. Sp 'all seems to be well'.

     

    So I don't know whether I 'should be concerned' about the apparent steep discount or not?
    28 Aug 2013, 12:45 AM Reply Like
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