Taiwan market: Chunghwa Telecom to reduce cash on hand through capital downsizing
Chunghwa Telecom (CHT) will decrease its cash on hand through downsizing its paid-in capital, according to a decision made by CHT's board directors on April 28.
CHT will shift NT$9.697 billion (US$287 million) from its capital surplus (accumulation of legally required retained earnings each year) to its pain-in capital, equivalent to expanding the latter by 10%, the company pointed out. CHT will then downsize the expanded paid-in capital by exactly NT$9.697 billion, equivalent to returning NT$0.909 per share to shareholders, CHT indicated.
The company's cash levels are in excess of operational needs, CHT explained, adding it had cash of NT$86 billion as of the end of March 2009.
source
CHT will shift NT$9.697 billion (US$287 million) from its capital surplus (accumulation of legally required retained earnings each year) to its pain-in capital, equivalent to expanding the latter by 10%, the company pointed out. CHT will then downsize the expanded paid-in capital by exactly NT$9.697 billion, equivalent to returning NT$0.909 per share to shareholders, CHT indicated.
The company's cash levels are in excess of operational needs, CHT explained, adding it had cash of NT$86 billion as of the end of March 2009.
source
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