The board of LED packaging company Unity Opto Technology, on August 11, approved plans to issue convertible bonds worth NT$1.5 billion US$47.1 million with a conversion price set at NT$54.89, and to increase its capital by 15 million shares, worth an estimated NT$734 million, to fund capacity expansion and research and development.
Through the fundraiser, Unity-Opto is expected to receive an estimated NT$2.234 billion.
Besides improving manufacturing and development capability, Unity Opto is planning to bring in new strategic partners through the issuances from both upstream and downstream, according to the company, adding that it will increase efforts in the LED lighting market in the future.
A report in today's Chinese-language Economic Daily News EDN claimed that LG Electronics would acquire a stake in Unity Opto Technology via the latest fundraiser.
But the LED chip packager, in response, issued a statement on the Taiwan Stock Exchange TSE saying the report is merely speculations by the media and the company has no further comment.
Unity Opto also reiterated that the common shares to be issued will be acquired by existing shareholders in accordance to their current share percentages. The convertible bonds will be offered publicly via securities brokerage channels.
Unity Opto's July 2010 revenues fell 4.7% on month to NT$702 million US$22.09 million but rose 74% from a year earlier. Revenues from January through July increased 109% to NT$3.95 billion versus NT$4 billion for the entire 2009.
