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Yageo Announces GDR and ECB Issuance

2020/03/02

Yageo Corporation (TAIEX: 2327 TW) announced today that following the resolution of issuance of GDRs within maxima 80 million shares, authorized by the extraordinary shareholders meeting held on February 26, 2020, the board of directors resolved to issue global depositary receipts (the "GDRs") and issue zero-coupon Euro convertible bonds (the "Bonds") respectively. The GDRs is with tentative issuance of 40 million to 70 million shares and the company will adjust within the issuance quota, depending on market conditions. The total amount of GDRs is expected to raise up to USD$ 930 million, estimated calculation with today’s closed share price. In addition, the Bonds are in the principal amount of US$ 200 million with 5 years maturity, and will be convertible into common shares (up to 10 million shares) of Yageo with a 30%~50% conversion premium, according to the company’s initial assessment.

 

The Bonds and GDRs issued by the company this time can provide global investors with different investment methods to participate in Yageo's long-term operation and global M&A strategies, reduce direct equity dilution ratios, strengthen shareholder structure, and increase international visibility.

 

In response to increasing market demands and the new era of 5G and automotive electronics, Yageo will continue to expand its global scale to ensure the company's long-term growth momentum, and obtain advanced technologies to enhance international competitiveness and establish sustainable operating capabilities to create higher value to the industry and shareholders.

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