Asus 2008 Annual Report Download - page 55

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51
ˈ˄ʳ
Converted (exchanged
or subscribed) common
stock, GDR, or
marketable security up
to the date of the report
printed
US$273,711,000 (up to the date of the report printed)
Other rights
Issuance & conversion
(exchange or
subscription) Act
Except for the corporate bonds redeemed, called, and
cancelled; also, in the no-conversion period regulated by
law, the creditors may have the corporate bonds
converted from the 31st day of the issuance to ten days
b
efore the due date. For the conversion of corporate
b
onds, it can be converted to common stock as follows:
Derived the numerator by having the principal of the
bond multiples by the exchange rate on the pricing date
(NT$33.82=US$1) and the conversion price at the time o
f
request made as denominator for calculating the
conversion to common stock shares. The company will
not pay cash or others for the amount of odd shares.
Issuance and conversion, exchange or
subscription measures; the influence o
f
issuance conditions on the dilution of equity
and shareholder’ s equity
(a) The corporate bond is with 0% interest rate; therefore,
it is possible to acquire long-term fund at low cost and
interest expense. The conversion price of this
convertible bond is based on the issuance of common
stock with premium; therefore, no negative impact on
the shareholder’ s equity. Moreover, if investors
exercise “put” or the corporate bond is due and
liquidated, the company will have the corporate bond
“redeemed” at a price below the principal; therefore,
it is with a positive effect on the shareholder’ s equity.
(b) Based on the conversion price of NT$100.86, the
dilution of shareholder’ s equity caused by the
convertible corporate bond is 4.7%; therefore, the
dilution effect is insignificant.
Depository institute -
Note: 1st ECB was liquidated on January 15, 2009.
2. CB
Type of corporate bond The 1st domestic convertible bond
Date of issuance (process) November 7, 2006
Face value NT$100 thousand
Location of issuance and trade Taiwan, GreTai securities market
Issuing price Issued at the face value 100%
Total amount NT$12,000,000 thousand
Interest rate 0%
Term Five-year term
Due date: November 7, 2011
Guarantee institute -
Trustee Trust Department of FuBon Bank
Underwriter FuBon Securities Co.