Taiwan Mobile has announced a tender offer to acquire a controlling stake in the IT services provider Systex Corporation through its subsidiary Taixin Telecom. The telecom giant plans to purchase at least 39% of Systex common stock to push its total holding past 50%. This cash and stock deal aims to integrate telecom and information technology services to dominate the regional corporate AI market.
The board of directors approved the acquisition today to build a deep partnership in the enterprise services sector. According to the company board statement, Taiwan Mobile already ranks as the largest single corporate shareholder of Systex with an existing 11.86% stake. Combining telecom services with software integration is expected to double the market share of Taiwan Mobile in the information services space. The partnership will focus on 3 key areas of growth which are cross selling, joint AI development, and regional expansion.
For Systex shareholders, the transaction is designed to increase stock liquidity and provide diversified investment holdings. The acquisition is expected to create a more competitive environment for the regional technology industry by merging digital communication channels with software consulting.
Under the terms of the offer, Systex shareholders who participate will receive 0.84 shares of Taiwan Mobile common stock plus NT$92.5 (approximately $2.87 USD) in cash for every 1 share they sell. This combination values the acquisition price at approximately NT$184.5 (approximately $5.72 USD) per share based on current closing values. The offer represents a 29% premium over the most recent closing price and a 33% premium when calculated against the average stock price over the last quarter.
The total transaction value will exceed NT$29.1 billion (approximately $902 million USD) if the acquisition reaches its maximum limit of 58% of Systex stock. To fund the upper limit of the transaction, Taiwan Mobile will issue more than 132,000,000 new shares of common stock alongside a cash payout of approximately NT$14.6 billion (approximately $452 million USD). The transaction will proceed if shareholders tender at least the minimum 39% threshold and the Fair Trade Commission does not block the merger. The official tender offer period begins next week and runs through early October.
