News

Chunghwa Telecom Hires Goldman, UBS, Morgan Stanley for USD 1.3 Bln Stake

A Taiwanese provider of telephone services, Chunghwa, has selected Goldman Sachs Group, UBS AG and Morgan Stanley to arrange an American Depositary Receipt (ADR) sale. Chunghwa said last month it plans to sell an 8 percent stake, or 773.4 million shares, owned by the government and shareholder Taiwan Mobile Co. to overseas and local investors. The stake is valued at NT USD 42.1 billion (USD1.28 billion), based on Chunghwa Telecom's trading price of NT USD 54.40 at 10:21 a.m. in Taipei.

Most of Chunghwa’s shares for the ADR issue will come from the Ministry of Transportation and Communications, the company indicated. This is the third time for Chunghwa to float an ADR, according to industry sources, which added that the three selected companies were the same underwriters for Chunghwa’s second ADR issuance in August 2005 while Goldman Sachs and UBS were two of the three underwriters in the company’s first ADR issue in July 2003. The road show for the ADR issuance will start soon with issuance to be finished by the end of this month, Chunghwa said.

In addition, Chunghwa will release another block of shares on the Taiwan Stock Exchange (TSE) at the same time as the ADR issuance but at a different price. These shares will be sold by auction after market hours, adding that a government committee will determine the price for both the ADR and domestic auction, Chunghwa indicated.


print	save	email	comment