Optodisc Technology, a second-tier maker of DVD discs in Taiwan, on April 5 announced that Japan-based Sino-JP Assets Management has decided to cancel its original plan of becoming its largest shareholder because both sides have been unable to settle on the price and volume of new shares and convertible bonds to be issued.
Optodisc will seek other target investors, the company pointed out. Optodisc is the second Taiwanese maker of optical discs to have trouble raising funds recently. CMC Magnetics’ application for floating US$200 million in overseas unsecured ECBs (euro convertible bonds) was rejected by the government recently.
Some Taiwanese makers of optical discs expressed concern that the two cases may cause lending banks to tighten credit lines and that Optodisc might sell DVD discs at prices lower than the current market value to bring in cash to meet urgent financial needs.
Article translated by Adam Hwang and edited by Eric Mah
