Taiwan's TSMC to buy back stake of up to 3.03 pct for 48.50 bln twd

Taiwan's TSMC to buy back stake of up to 3.03 pct for 48.50 bln twd

	Published : Tue, 13 Nov 2007 12:42 By : Agencies Print this Story

TAIPEI (XFN-ASIA) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW) said its board of directors has approved a repurchase of up to 3.03 pct of its shares outstanding from the open market for a maximum of 1.5 bln usd, or about 48.50 bln twd.

The share buyback plan was devised as part of the agreement TSMC made with Royal Philips Electronics NV in March for the latter to dispose of its holding in TSMC in an orderly manner, the world's largest wafer foundry said.

Philips currently still holds an 8 pct stake in TSMC.

TSMC plans to buy back up to 800 mln common shares, to be cancelled afterward, at prices from 43.20 twd to 94.20 twd per share between Nov 14, 2007 and Jan 13, 2008.

TSMC and Philips have completed the first two phases of their multi-phased plan, selling approximately 1.75 bln usd in shares to long-term investors in Taiwan in March, and selling another 2.56 bln usd in TSMC common shares in the form of American Depositary Shares in May.

This buyback, the third phase of the multi-phase plan, is open to all shareholders and Philips intends to sell up to 1.5 bln usd of its shareholding in TSMC in the open market during this period, TSMC chief financial officer Lora Ho said in a prepared statement.

Ho said the fourth phase of the plan remains unchanged -- that is,TSMC intends to conduct additional share repurchases for cancellation over the next three years, subject to at least maintaining its current annual cash dividend per share.

Philips intends to continue participating in these share repurchase programs, and it will also consider other sales to long-term financial investors mutually agreeable to Philips and TSMC, she said.

Other than as part of the multi-phase plan, Philips does not intend to sell TSMC shares in the open market, Ho added.

In today's trade, TSMC closed up 0.10 twd at 61.70.

(1 usd = 32.30 twd)

philip.wang@afxasia.com

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