Asus 2011 Annual Report Download - page 65

61
Type of corporate bond The 1st domestic convertible bond
before the due date, if the convertible bond in
circulation is for an amount less than 10% of total
issuance, the company may send a “bond call notice”
(the said period starts from the date of notice sent by
the company; also, the baseline date for “call” is on
the last day of the period; moreover, the baseline date
for “call” may not fall in the no-conversion period o
f
this convertible bond) to creditors (based on the
roster on the fifth working day before sending the
“Bond Call Notice;” however, a notice is published
for the knowledge of investors who have acquired the
convertible bond by trade or other means) by
certified mail. Inform GreTai in writing to have it
published; also, the convertible bonds are “called” at
face value on the due date.
Restrictive clauses -
Rating institute, rating date, corporate
bond rating
-
Other rights
Converted
(exchanged or
subscribed) common
stock, GDR, or
marketable security
up to the date of the
report printed
NT$7,000,000 (up to the date of the report printed)
Issuance &
conversion (exchange
or subscription) Act
Except for periods of (1) the no-conversion period defined by
law (2) from three working days prior to ex-right date for
stock dividend registered with SEC by the company to the
baseline date of equity distribution; from three working days
prior to ex-dividend date for cash capitalization to the
b
aseline date of stock distribution; three working days prior
to cut-off date for cash capitalization to the baseline date o
f
equity distribution; and three working days prior to the
baseline day for merger or stock split to the baseline date,
creditors may request the company to have convertible bonds
converted to the company’s common stock in accordance
with Article 11, Article 12, and Article 17 of this Act at any
time from the 31st day of the issuance date to ten days before
the due date.
ssuance and conversion, exchange or
subscription measures; the influence of
issuance conditions on the dilution of
equity and shareholder’s equity
（a）The convertible bond helps avoid profit erosion and
minimize the dilution of shareholder’s equity and ERP
resulted from the substantial increase of stock shares;
therefore, it is to the best interest of shareholders.
（b）Based on the conversion price of NT$105.4, the dilution
of shareholder’s equity caused by the convertible
corporate bond is 3.23%; Nonetheless, the bond was
redeemed on November 7, 2011 and therefore there is
no potential dilution effect or has no effect on
stockholders equity.
Depository institute -