Chunghwa Picture Tubes Ltd (中華映管), the nation’s third-largest liquid-crystal-display (LCD) panel maker, yesterday obtained shareholder approval to raise about NT$15 billion (US$456.5 million) by selling new shares via private placement, aiming primarily to finance operations, repay debt and to buy equipment.
Last month, Chunghwa Picture’s board proposed to offer a maximum of 6 billion common and preferential shares at NT$2.5 per share after posting losses of NT$11.68 billion last year because of a production glut and the global economic downturn.
Shareholders also approved the company’s plan to issue US$250 million in convertible bonds.
Chunghwa Picture also obtained a one-year bank loan rollover from creditor banks on NT$41.3 billion loans, easing liquidity pressures.
Separately, company president Kay Chiu (邱創儀) said shipments failed to meet the company’s expectation mostly because of problems with supply of components including chips and printed circuit boards.
A severe shortage could persist through next month, Chiu said, reiterating the company’s concerns over tight component supply.
Last month, shipments of the company’s computer and TV panels dropped 1.8 percent to 1.22 million units, from 1.24 million units in March.
Chunghwa Picture expects computer and TV panel shipments to increase 10 percent in the second quarter from 3.1 million units in the first quarter, helped by recovering demand, inventory restocking and increasing demand from the Chinese market.
Chunghwa Picture is one of the local panel makers to have signed a memorandum of understanding with Chinese TV makers to supply US$2 billion in TV panels for the next three years.
Shares of Chunghwa Picture dropped 1.65 percent to NT$5.36 yesterday.
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