Shareholders of Yageo have approved the company’s plans to reduce its capital by NT$15.4 billion (US$514 million) or 70% to NT$6.6 billion. Shareholders will receive NT$7 for each share.
Yageo is expected to see its earnings and EPS improve significantly in 2014 following the capital reduction, according to market sources.
Meanwhile, Yageo chairman Pierre Chen said that he is guardedly optimistic about the prospects of the passive component industry in the second half of 2014, citing increasing demand for passive components from the 4G sector.
Yageo’s capex budget for 2014 is expected to reach NT$1.2-1.3 billion, mainly for the development of high-tech, high-margin MLCCMultiple-layer capacitors interleave dielectric and electrode layers. This type of capacitor has increased current handling capacity, higher Q, and lower internal series resistance than conventional capacitors of the same size and capacitance. and thin chip resistor products, according to the company.
