Taiwan Mobile Co., Ltd. (TWSE:3045) agreed to acquire Taiwan Star Telecom Corporation Limited for TWD 28.4 billion on December 30, 2021. Under the terms, Taiwan Mobile will issue 282.2 million shares with exchange ratio of 0.04508. Transaction will be financed with issuance of new shares.

Transaction is subject to approval from Taiwan Star Telecom, National Communications Commission and Fair Trade Commission. After completion net worth per share and earnings is estimated to rise in the future. Transaction is expected to close on December 31, 2022.

Audry Ho of Ernst & Young, Taiwan acted as accountant for Taiwan Mobile. Regulators have not yet completed the approval process of the merger as of September 30, 2022, which is the target completion date. If regulatory approvals are not received by December 31, 2022, TWM has the option to extend the contract, upon agreement by the two parties.