Taiwan Mobile (TWM), one of the top three operators of mobile communication services in Taiwan, on May 7 announced it will reduce its paid-in capital by 24% from NT$49.9976 billion (US$1.506 billion) currently to NT$37.9976 billion in the first half of 2008 and write off the book value of fixed assets by NT$14.4 billion due to losses from decommissioning and the selling off of 2G hardware/software, according to a decision made by the company's board of directors at a meeting on May 7.

The downsizing of paid-in capital will maintain TWM's net earnings per share (EPS) and ROE (return on equity) at a steady level, the company emphasized. The amount of reduction in capital will be returned to shareholders at NT$2.40 in cash per share, TWM indicated.

In order to upgrade its infrastructure, TWM will dispose of some hardware and software assets, mostly 2G, through the decommissioning of a large portion of it and selling the remaining at prices below book value by the end of this year. Consequently, this will incur a total loss of NT$14.4 billion in book value, TWM noted. As TWM has decommissioned fixed assets worth NT$300 million earlier this year, the 2007 total loss in book value of fixed assets will reach NT$14.7 billion, the company noted.

Shareholders will receive a minimum net EPS of NT$2.60 next year, consisting of the returned capital of NT$2.40 and a cash dividend for 2007, TWM pointed out.

Source:佚名