Taiwan Mobile to sell Chunghwa stake

23 Jan 2006

According to a report on the Dow Jones Newswire, Taiwan Mobile is planning to sell its entire 2% stake in Chunghwa Telecom. The cellco’s Chief Financial Officer Hui-Ming Cheng, is quoted as saying that no decision has yet been made on the date of the sale, or whether the shares would be sold domestically or overseas. ‘There are many factors to consider, including the price,’ Cheng said. ‘However, if we want to sell (the shares) overseas, there is a problem of a 40% limit on foreign ownership, so we can sell only about 80,000 shares," Cheng said. According to Taiwanese legislation foreign ownership in any state-owned telecommunications company cannot exceed 40%. As it stands foreign ownership of Chunghwa Telecom shares is 39.26%.