Watch that premium fall.....
TAIPEI, May 11 (Reuters) - Leading Taiwan blue chip Taiwan Semiconductor Manufacturing Co <2330.TW> set guidelines on Tuesday enabling local shareholders to convert common stock into American Depositary Receipts.
Taiwan Semicon, the world's leading manufacturer of made-to-order "foundry" microchips, has a listing of American Depositary Receipts <TSM.N> on the New York Stock Exchange whose price is higher than that for the underlying common stock.
Under the board-approved rules, shareholders who hold at least 0.02 percent of Taiwan Semicon's outstanding common shares, or 1,209,436 shares, and have held them for a year would be eligible for the conversion, a company statement said.
Total conversions would be capped at 0.5 percent of outstanding shares in any three-month period so as to avoid share price volatility, the company said.
Taiwan Semicon said major shareholders had asked for the arrangement after company chairman Morris Chang sold 10 million common shares worth US$35.5 million to convert them into ADRs, a move described by analysts as profitable for Chang because of a price differential between the common stock and the ADRs.
The firm said it did not recommend or promote such conversions.
On Tuesday, Taiwan Semicon's shares ended at T$106, while its ADRs were at US$22-11/16 -- the equivalent of T$148.83 per common-stock share. One ADR equals five common shares.
|
