Nanya Technology board approves capital reduction plan
By Kathryn Chiu , The China Post
March 17, 2014, 12:04 am TWN
TAIPEI, Taiwan -- Formosa Plastics Group's (FPG) subsidiary Nanya Technology Corp. (南亞科技) on Friday announced a 90-percent capital reduction plan, making it the largest-ever plan of its kind in Taiwan.
Nanya Technology yesterday said in a company statement that its board has approved the capital reduction proposal to strengthen the company's financial structure and business development.
One of Taiwan's leading makers of dynamic random access memory (DRAM) chips, Nanya Technology proposed to carry out a capital reduction plan to decrease nearly 21.57 billion common shares, amounting to capital of nearly NT$215.65 billion, or a 90-percent reduction in its outstanding capital. In other words, for every 1,000 shares, 900 shares will be written off, and paid-in capital after the reduction will be almost NT$23.97 billion.
According to Nanya Technology, the purpose of this proposal is to eliminate an accumulated deficit. As of Dec. 31, 2013, the accumulated deficit was at NT$233.09 billion, after the transaction the accumulated deficit will decrease to NT$17.43 billion.
Nanya Technology said that the proposals will be submitted to the general shareholder meeting for approval on June 6, 2014.
Concurrently, Nanya Technology's board has approved the sale of Sumpro Electronic, Nanya's 8-inch fab, to Vanguard International Semiconductor (VIS, 世界先進) for NT$2.18 billion, much lower than market expectations of NT$3 billion, sources said.