Taiwan’s WPG board OKs NT$10 billion issue of perpetual preferreds

By Sarah Lizee

Olympia, Wash., June 28 – WPG Holdings Ltd.’s board of directors approved on Friday an issue of NT$10 billion perpetual preferred shares A, according to a notice.

The dividend rate is capped at 8% per annum on the issue price. The dividend rate will be equal to the five-year interest-rate swap plus a fixed rate, to be determined by the chairman.

Cash dividends will be distributed annually.

The issue price is expected to be NT$50 per share but may be changed.

The number of shares subscribed by or allotted to employees will be 10% of total issued shares, the number of shares publicly sold will be 10% of total issued shares, and the ratio of shares subscribed by or allotted as stock dividends to existing shareholders will be 80% of total issued shares.

The preferreds may be redeemed in whole or in part at par no earlier than the day following the fifth anniversary of the issuance date.

Proceeds will be used for loan repayment and to enrich working capital.

WPG Holdings is a semiconductor and electronics distributor based in Taipei, Taiwan.

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