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Taiwan's Compal Elec to offer up to $546 million to buy all Compal Comm outstanding shares
September 30, 2013 / 9:44 AM / 4 years ago

Taiwan's Compal Elec to offer up to $546 million to buy all Compal Comm outstanding shares

TAIPEI (Reuters) - Taiwan’s Compal Electronics (2324.TW) will acquire all outstanding shares of its affiliate Compal Communications 8078.TW at a 16 percent premium to its Monday closing price, the world’s second-largest contract PC maker said in a statement on Monday.

The company said it plans to acquire at least 5 percent and up to 52.22 percent of the total issued and outstanding shares of Compal Communications at T$50.8 per share, valuing the total consideration amount of the tender offer at up to T$16.13 billion ($545.77 million).

Compal said the move comes “in light of industry trends and integration of corporate resources”.

After the completion of the merger, handset contract maker Compal Communications will be merged into Compal. The merger is expected to be completed by April of 2014, the company said.

Compal Electronics shares closed up 2.4 percent at T$21.6, while Compal Communications rose 2.5 percent to T$43.5. The broader market .TWII slipped 0.7 percent.

($1 = 29.5545 Taiwan dollars)

Reporting by Clare Jim; Editing by Muralikumar Anantharaman

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