Offer period ends November 5 with no extension
Taiwan Mobile's tender offer for Systex Information has entered its final stage, with the offer period ending November 5. Taiwan Mobile General Manager Jamie Lin said in a media interview on the 27th that the offer period will not be extended further, progress is good, and he has very high and full confidence in clearing the minimum acquisition threshold. In the interview he did not disclose the current number of tendered shares or the specific acquisition ratio, and the actual acquisition result will be announced after the deadline expires, with whether the threshold is met subject to the formal announcement.
Share price reaction after FTC clearance and tender assessment
Asked whether the rise in Systex's share price after clearance by the Fair Trade Commission would reduce shareholders' willingness to tender, Lin said that after FTC clearance the related risks have been removed, and the share price moving toward the offer price is a normal market reaction. He explained with general tender-offer cases that if the acquisition ultimately fails, the share price may pull back, and shareholders will assess on their own whether to tender or trade in the market. He further explained his logic that if investors believe the acquisition will not succeed, the best strategy is to sell and buy back after the share price falls; if they believe the acquisition will succeed, they should tender. He used this to explain his confidence in the acquisition threshold, but this was his judgment on the market and investor behavior, not tender data published by Taiwan Mobile, nor does it mean the acquisition result is already determined.
Telecom stocks offer defense with growth themes
Speaking on recent valuations of telecom stocks, Lin said the market on one hand notes that AI development requires computing power and networks, from which telecom operators may also benefit; on the other hand, manufacturers have recently corrected while telecom stocks have shown relatively resilient performance. He described telecom stocks as combining defensive and growth themes, rising about 20% to 30% over the past year, showing offense in defense. Against this backdrop, he believes Taiwan Mobile's share price still has room to further reflect earnings performance, with valuation trends linked to operating results and market fund allocation.
Profit growth and valuation comparison with Chunghwa Telecom
Lin said Taiwan Mobile's profit growth rate this year is the highest among the telecom trio, and if one-off real estate gains of Chunghwa Telecom in recent months are excluded, Taiwan Mobile's profit lead would be even larger. Based on profit growth and P/E ratio factors, he believes that in terms of P/E ratio and profit growth, it is only a matter of time before Taiwan Mobile's share price surpasses Chunghwa Telecom. However, in the interview he did not propose a share price target or specific timeline, nor did he provide the full calculation for the profit comparison between the two companies. The related profit growth and one-off gain figures remain subject to the latest financial reports and announced data of the two companies for verification, and whether the share price will surpass depends on market valuation and subsequent operating performance, still to be verified by the market.