The conversion deal presented for approval is obviously not one many of us expected. It falls far short of providing fair and proper compensation to the IMOS shareholders for the sacrifices they made to enable the spin off of 8150 and end the convoluted corporate structure. Nevertheless, I have decided to vote in favor of the proposal because I see no reasonable alternative. If the proposal is rejected, I believe it unlikely that management will offer us a far better proposal any time soon. And,a possible takeover is a long shot that I am not willing to bet on. So, if the deal is rejected where are we?We remain a holding company that is selling for significantly less then fair asset value.Also,the fact that we lose control of 8150 as a result of the deal without a significant premium,is ameliorated by the Tsinghua deal,which, if and when it is completed, will also strip IMOS of its control of 8150. If IMOS remains a holding company without control of 8150 it may sell at even more of a discount then presently exits. In short, the deal before us stinks,but I see no alternative to end the discount and get the stock price closer to fair value. Rejection of the deal will cause further delay with a very uncertain outcome. I therefore held my nose, voted against the directors,but voted for the conversion deal.
The most important question ,namely. " what is 8150 actually worth " is probably the most difficult to get an accurate answer at this time. We have it being traded around NT 34 ( undoubtedly being supported to some unknown degree by the ongoing buy back ) while Tsinghua is willing to pay NT40. Because they must view this as a good investment, it would not be unreasonable to assume they must value 8150 stock at somewhere north of NT40. Moreover, the validity of managements expectations regarding the revenue projections of the China expansion will have an important impact on the value of 8150,particularly if those revenue numbers are realized. But, the factors that will most importantly impact 8150's valuation are at this point really unknown. The impact of the conversion, the Tsinghua investment, the China expansion, potential sizable buy backs, are currently unknown factors that will have either a negative or positive impact on the value of 8150 going forward. You would have to be clairvoyant with all these unknowns to project with any degree of certainty where 8150 will be trading in 3, 6, or 12 months from now.