Taiwan VIBO Telecom To Raise NT$5 Billion From Private Placement

TAIPEI -(Dow Jones)- VIBO Telecom Inc., Taiwan's newest wireless operator, plans to raise NT$5 billion through a private placement to existing investors in the fourth quarter, company President David Wang said Tuesday.

That follows VIBO securing last week a syndicated loan for NT$9.2 billion from 23 banks, led by Chiao Tung Bank and Chinatrust Commercial Bank, Wang said.

The company, which will offer only third-generation mobile services, will launch in either November or December, Wang said.

It will use most of the funds raised to set up the infrastructure for its wireless network, he said, adding the company is targeting 800,000 users in its first year of operation.

Taiwan, with a population of 23 million, has more than 20 million mobile phone subscribers. The market is dominated by Chunghwa Telecom Co. (CHT), Taiwan Mobile Co. (3045.TW) and Far EasTone Telecommunications Co. (4904.TW).

Kinpo Group, an electronics conglomerate, owns more than 50% of VIBO, Wang said.

-By Alex Pevzner, Dow Jones Newswires; 8862-2502-2557; alex.pevzner@dowjones.com

-Edited by Andrew Bullard

(END) Dow Jones Newswires"

Posted to the site on 20th September 2005