Tags:3G

Vibo Telecom, one of the five operators of 3G mobile communication services in Taiwan, will downsize its paid-in capital by 58% from NT$21.0 billion (US$690 million) to NT$NT$8.82 billion and then raise additional capital of NT$9.0 billion by issuing new shares in two phases, according to the company.

The capital adjustment plan was approved at a provisional shareholder meeting on May 7, Vibo noted. Of the planned fund-raising, NT$5.0 billion worth of new shares will be issued in July for subscription by existing shareholders and domestic investors, while the remaining NT$4.0 billion is expected to be raised from target strategic investors, mainly international 2G and/or 3G telecom carriers, by the end of 2008, Vibo pointed out.

The downsizing of capital is to cover cumulative operating losses, while the raising of NT$9.0 billion is to mainly meet the needs of repaying debts as well as procuring equipment and 3G handsets, Vibo indicated.

Vibo posted revenues of NT$833 million, net losses of NT$1.266 billion and a net loss per share of NT$0.60 for the first quarter of 2008.



Source:DIGITIMES