Alexa

UMC plans private placement

UMC plans private placement

Taipei, March 13 (CNA) United Microelectronics Corp. (UMC), one of Taiwan's leading contract chip makers, is planning to make a private placement in a bid to set up strategic alliances with its counterparts at home and abroad. A board meeting held Wednesday approved the private placement proposal, which will sell up to 1.269 billion UMC shares to new investors in the hope that the investments will forge cooperation in semiconductor technology development. UMC said it will use part of the funds raised as working capital. The board meeting also approved a proposal that UMC will issue NT$0.5 (US$0.02) in cash dividend for 2013, when the chip maker posted NT$1.01 in earnings per share (EPS), up NT$0.49 in EPS recorded in 2012. The proposed cash dividend represents a dividend yield of 3.87 percent based on Wednesday's closing price of NT$12.90. The dividend proposal is pending approval from UMC's shareholders, expected in an annual general meeting scheduled for June 11. In February, rival Taiwan Semiconductor Manufacturing Co. (TSMC) proposed issuing NT$3 in cash dividend for 2013, when TSMC posted NT$7.26 in EPS. UMC's board meeting also gave a green light to the company's budget of NT$4.948 billion for capacity build-up. As of 11:59 a.m. Thursday, shares of UMC had added 1.94 percent to NT$13.15 on the Taiwan Stock Exchange. (By Jackson Chang and Frances Huang)


Updated : 2021-03-03 07:59 GMT+08:00