Nan Ya Plastics Corp announced plans, as approved by its Board of Directors, to sell 190.52 million shares of affiliate Formosa Petrochemical Corp by the end of Q2-13.
Nan Ya’s announcement makes it the third unit under the nation’s biggest diversified industrial group, Formosa Plastics Group, to declare plans to sell Formosa Petrochemical shares over the past seven days. Formosa Plastics Corp, the nation’s largest maker of polyvinyl chloride, and Formosa Chemicals, which produces aromatics and styrenics, had earlier announced plans to each sell 190.52 million Formosa Petrochemical shares by June 30.
Based on Formosa Petrochemicals’ closing share price of NT$84.80 yesterday, the three companies are expected to raise up to NT$48.47 billion (US$1.67 billion) in fresh funds by selling a total of 571.56 million shares. Proceeds from the sale will be used to finance the construction of a steel mill in the Vung Ang Economic Zone in Vietnam, the group’s first venture in the steel industry, and other potential future investment overseas, as well as to bridge its financial gap, Wu said, without elaborating.