Acer reduces Wistron stake to less than 9%
Mar 26, 2007
Acer has said that on March 21 it released a total of 50 million Wistron shares in the form of global depositary receipts (GDRs) for NT$2.44 billion (US$73.9 million), while generating an investment income of NT$1.33 billion.
After the sale, Acer still holds 111.3 million shares, or an 8.75% stake, in Wistron, previously the notebook manufacturing arm of Acer, according to information available at Acer.
Together with Acer's recent release of its holdings in Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn Electronics (Hon Hai Precision Industry), Acer is expected to hold as much as NT$34 billion in cash, allowing the company to either launch acquisition plans to further expand its market share or to reduce its registered capital in order to boost its ROE (return on equity) for its shareholders, according to market sources.