TAIPEI (Taiwan News) — Taiwan Mobile plans to spend more than NT$29.1 billion (US$904.5 million) to raise its stake in Systex to more than 50%, the company said Wednesday.
The telecom’s wholly owned subsidiary, Taiwan Fixed Network, will make the offer for at least an additional 39% of Systex’s shares, per Liberty Times. Taiwan Mobile holds an 11.86% stake, making it Systex’s largest single corporate shareholder.
Taiwan Mobile CFO and Spokesperson Chang Chia-chi (張家麒) said the company aims to build a strategic alliance between Systex and its enterprise services business, per CNA. The alliance will focus on AI and regional expansion, to double Taiwan Mobile’s share of the IT services market.
Under the offer, each Systex share will be exchanged for 0.84 Taiwan Mobile shares plus NT$92.5 in cash. Based on Wednesday’s closing prices, the offer is worth about NT$184.5 per Systex share, a premium of about 29%, while the premium is about 33% based on the average closing price over the past three months.
If the tender offer reaches its maximum size, Taiwan Mobile will acquire a 58% stake in Systex. The deal would require more than 132 million Taiwan Mobile shares and about NT$14.6 billion in cash, while completion is also subject to approval from the Fair Trade Commission.
The tender offer is scheduled to run from Aug. 18 to Oct. 6.
