Taiwan Star Cellular to take 100% stake in Vibo Telecom via stock swap

29 Apr 2014

Taiwan Star Cellular, a new player which acquired a 10MHz block of LTE-suitable spectrum in the 900MHz band in the government’s October 2013 spectrum auction, will take a 100% in existing mobile network operator Vibo Telecom. According to Digitimes, Taiwan Star Cellular will take control of Vibo via a stock swap of one of its shares for 3.05 Vibo shares, with the process expected to be concluded by 15 June 2014. In order to carry out the stock swap Taiwan Star Cellular will issue 200 million new shares to exchange for the 610 million Vibo shares in circulation.

With Taiwan Star Cellular aiming to launch commercial 4G services in the third quarter of this year, it is understood that Vibo will initially continue to market its 3G services, before the latter brand is phased out next year. Taiwan Star Cellular president Cliff Lai meanwhile was cited as saying that his company aims to have between 60% and 70% of 4G subscribers coming from new subscriptions, while the remainder will be existing Vibo 3G subscribers upgrading.

Taiwan, Taiwan Star (T STAR) (incl. Vibo Telecom), Taiwan Star Cellular (T STAR)