Vee Telecom raises VMAX stake to 72.43%

6 Feb 2012

Vee Telecom, which is based in the south of Taiwan, has raised its stake in rival WiMAX firm VMAX Telecom to 72.43%, paving the way for a full merger, the DigiTimes reports. Vee has acquired a 38.96% stake from Tecom, a Taiwanese equipment vendor, and a further 33.47% stake from local cellco Vibo Telecom, paying TWD2.70 (USD0.09) per share. The knock-down price means that Vee will secure control of its rival for just TWD391.16 million, a mere fraction of the TWD1.45 billion figure originally mooted last September. Going forward Vee has indicated that it hopes to acquire the remaining 27.57% of VMAX, including the 19% stake held by US-based chip manufacturer Intel. The announcement marks the first concrete steps towards much needed consolidation in Taiwan’s crowded WiMAX market, which presently contains six operators: three covering the north of the country and three covering the south.

Taiwan, VeeTIME, VMAX Telecom