Hon Hai chair pock­ets about NT$7.1 bil. in cash div­i­dends from earn­ings

The China Post - - LOCAL -

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 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.

Stock Swap

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-in­pack­age 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.

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