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Hon Hai chairman pockets NT$7.1 billion in cash dividends

Hon Hai chairman pockets NT$7.1 billion in cash dividends

Taipei, Oct. 7 (CNA) Terry Gou (???), chairman of the world's largest contract electronics maker Hon Hai Precision Industry Co. (??), on Wednesday received a cash dividend of around NT$7.1 billion (US$217 million) from his company based on its 2014 earnings per share, according to a market estimate. Hon Hai issued dividends of NT$4.3 per share to its shareholders Wednesday -- NT$3.8 in cash dividend and a NT$0.5 in stock dividend. Gou, who holds some 1.88 billion Hon Hai shares, bagged about NT$7.142 billion of the company's total payout of NT$56.21 billion. The dividends were based on the company's earnings per share of NT$8.85 last year, which was a jump from NT$7.26 in in 2013 and highest in Hon Hai's history. Market analysts have forecast that Hon Hai, an assembler of iPhones and iPads for Apple Inc., will report a 4-5 percent sequential increase in consolidated sales for the third quarter as its sales momentum started to pick up in September when Apple unveiled its latest iPhones. In the fourth quarter, analysts said, Hon Hai is expected to benefit from the peak season in the global high-tech industry. They have forecast record sales of NT$4.3 trillion to NT$4.5 trillion for the company for the whole of 2015, compared with NT$4.2 trillion last year. Meanwhile, market sources said Hon Hai has launched a campaign to persuade institutional shareholders of integrated circuit packaging and testing services provider Siliconware Precision Industries Co. (??) to support a stock swap deal between Hon Hai and Siliconware. The stock swap, in which Siliconware will issue new shares to Hon Hai, was proposed to counter a deal in which Advanced Semiconductor Engineering Inc. (ASE, ???) acquired a 25 percent stake in Siliconware via a tender offer. Siliconware said that ASE's acquisition has paved the way for a hostile takeover in the future. If the stock swap deal goes through, Hon Hai will gain a 21.24 percent stake in Siliconware, which would own a 2.2 percent stake in Hon Hai, and ASE's stake in Siliconware would be diluted to about 19 percent. Siliconware has scheduled a special shareholders' meeting for Oct. 15 to seek approval for the deal with Hon Hai. ASE, however, has filed a court injunction to stop the shareholders' meeting, saying that the stock swap will dilute Siliconware's earnings per share and will not be in the best interests of Siliconware's shareholders. Meanwhile, Siliconware is aiming to team up with Hon Hai to develop advanced system-in-package technology, saying that the partnership will enhance Siliconware's bottom line in the long term. ASE is the world's largest IC packaging and testing firm, ahead of U.S.-based Amkor Technology Inc. and Siliconware. (By Jalen Chung and Frances Huang)


Updated : 2021-09-21 16:28 GMT+08:00