05.18.2001
Fixed-line players gravitating towards TCC, Taiwan Fixed Network joins the club

• Following the announcement of Taiwan Cellular Corp.'s (TCC, 4901 'Tai Wan Da') acquisition of TransAsia Telecommunications Inc. (unlisted) in early May, the company is entrenching ties with affiliate Taiwan Fixed Network Co. (unlisted), one of Taiwan's four fixed-line telecom service companies. Taiwan Fixed Network has announced it will spend around NT$15b to purchase 429m shares (11.7%) of TCC.

• Taiwan Fixed Network views the buy-in as a long-term strategic investment. The company is capitalized at NT$92b and TCC at NT$36b. Together with the TransAsia acquisition (a 97% stake), the consolidation leaves TCC secure in its position as a local telecom industry leader.

• VB Primasia Investment Opinion: The Taiwan Fixed Network strategic investment will boost synergies and enhance prospects for winning a 3G license. We recommend a LONG-TERM BUY on TCC.

AngelLo@Primasia.com +886-[0]2-2547-8865