TAIPEI, Taiwan, Jan. 16, 2012 /PRNewswire-Asia-FirstCall/ --
Chunghwa Telecom Co., Ltd (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or
"the Company"), today announced that it has received board approval
to participate in China Airlines'
secondary equity offering up to a maximum amount of NT$3.5 billion, at the issue price of
NT$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 NT$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 January
16 is NT$14.30.
Chunghwa Telecom focuses on business opportunities in the six
emerging industries promoted by the ROC Government. 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 strategic alliances. China Airlines is not only
Taiwan's largest airline company,
but also the country's tourism leader. The forging of a strategic
alliance with China Airlines could enable Chunghwa Telecom to
leverage China Airlines' expertise in both the airline and tourism
industries, and position Chunghwa Telecom to further expand the
scope of its Information Communications Technology (ICT) business
to tourism and related businesses. Chunghwa Telecom expects this
initiative to enhance the tourist experience, as well as to
increase shareholder value.
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% of China Airlines shares after the
offering.
About Chunghwa Telecom
Chunghwa Telecom (TAIEX: 2412, NYSE: CHT) is Taiwan's leading telecom service provider. The
Company provides fixed-line, mobile and Internet and data services
to residential and business customers in Taiwan.
SOURCE Chunghwa Telecom Co., Ltd.