Fitel plans to downsize capital by 60%, raise new capital via private placement
Harris Lin, Taipei; Adam Hwang, DIGITIMES [Monday 24 May 2010]
First International Telecom (Fitel), the only operator of PHS low-power mobile communication services, and a WiMAX licensee in Taiwan , plans to reduce its current paid-in capital of NT$4.5 billion (US$142 million) by 60% to cover its cumulative net loss of NT$4.39 billion, and then issue up to 2.1 billion new shares for private placement to introduce new shareholders, according to the company.
Fitel plans to kick off commercial operation of its WiMAX network in the second half of 2010, and this is related to the fund-raising project, according to industry sources. Viewing that PHS operation is on the decline in the Japan and China markets and has no growth potential in the Taiwan market, Fitel has to transform its operation to focus on WiMAX, the sources pointed out.