APT approves merger with Hon Hai subsidiary
By Ted Chen, The China Post
June 19, 2014, 12:05 am TWN
TAIPEI, Taiwan -- A board of directors meeting at Asia Pacific Telecom (APT, 亞太) yesterday approved of the company's merger with Hon Hai Precision Industry Co.'s (鴻海) Ambit Microsystems Corp (國碁電子) via a swap trade.
The merger will proceed via a swap of shares between Ambit and APT at a 1:0.4975 ratio. Following the deal, Ambit will be rendered the merged entity and APT the surviving company, with Hon Hai holding a 23.14-percent stake in APT at the cost of NT$43 billion. The merger is expected to take effect on June 30, 2015.
APT Chief Financial Officer Hong Long-tsu (洪龍珠) pledged at a briefing at the Taiwan Stock Exchange that Hon Hai intends to uphold the interest of all APT employees and the company's current management team will continue to oversee daily operations. In addition, membership in the APT's board of directors will require the consent of the company's current board members.
According to Hong, the company is aiming to launch its own 4G network toward the end of this year.
Most notably, a pending trade in 4G network spectrum blocks between APT and Ambit may only be submitted to the National Communication Commission (NCC) for assessment after the regulator approves the launching of the two companies' respective 4G networks.