FET to acquire 100% stake in Sparq for merger
Far EasTone Telecommunications (FET), one of the three largest mobile telecom carriers in Taiwan, on June 25 announced it will have its wholly owned subsidiary, Yuan Cing Infocomm Tech, acquire 73.26% stake in New Century InfoComm Tech (Sparq), a small operator of fixed-line telecommunication services, at NT$10.93 per share through open purchases, in an attempt to eventually combine Sparq.
As FET holds a 26.74% stake in Sparq currently, it will increase the stake ratio to 100% upon the completion of Yuan Cing's acquisition and then start a merger with Sparq for convergence of digital communications, FET pointed out.
With the acquisition to cost NT$20.815 billion (US$650 million), Yuan Cing will raise additional paid-in capital of NT$15 billion through issuing new shares and FET will subscribe to all of them and additionally offer a loan of NT$5 billion, FET indicated.
As FET holds a 26.74% stake in Sparq currently, it will increase the stake ratio to 100% upon the completion of Yuan Cing's acquisition and then start a merger with Sparq for convergence of digital communications, FET pointed out.
With the acquisition to cost NT$20.815 billion (US$650 million), Yuan Cing will raise additional paid-in capital of NT$15 billion through issuing new shares and FET will subscribe to all of them and additionally offer a loan of NT$5 billion, FET indicated.
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