Tuesday, August 9, 2005

Taiwan Proceeds with Privatization of Chunghwa Telecom

Taiwan' Ministry of Transportation and Communications raised NT$16.29 billion (US510 million) through the sale of 289.43 million shares of Chunghwa Telecom, the island's incumbent operator, representing a 3% stake in the company.

A further 14% stake in the company was sold in New York through the sale of 135.1 million American Depositary Receipts (ADRs) priced at US$18.98, raising a further US$2.56 billion. Each CHT ADS share represents ten common shares of CHT.

The sale reduced the government stake in the Chunghwa Telecom from 65% to 48%.

The share sale went ahead despite opposition from the company's labor union, which also deems the sale of ADRs to overseas investors to be illegal.


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