Taipei, May 16 (CNA) Bankrupt Japanese memory chip maker Elpida Memory Inc. has agreed to buy back its outstanding Taiwan depositary receipts (TDRs) at a price of NT$6.95 (US$0.23) per unit, Taiwan's Securities and Futures Investors Protection Center Chairman Chiu Chin-ting announced Wednesday.
Chiu said Elpida has remitted funds in the amount of NT$316.36 million to Taiwan, enough to buy back 80 percent of its outstanding TDRs in Taiwan.
"Elpida has demonstrated its sincerity" to compensate investors, Chiu said.
He also revealed the Japanese company will decide whether or not to remit more money to Taiwan based on the number of investors who asked the government-funded protection center to help with their claims.
Elpida TDRs started to be traded on the Taiwan Stock Exchange (TWSE) on Feb. 25, 2011 after the company issued 200 million TDRs, becoming the first Japanese firm to sell TDRs on the local bourse.
The chip maker filed for bankruptcy protection in Tokyo on Feb. 27 amid a slowdown that was eroding the global dynamic random access memory (DRAM) sector. It was then ordered by TWSE to delist its TDRs on the bourse, effective from March 28, after a delisting of Elpida shares on the Tokyo Stock Exchange.
Currently, there are some 54.25 million units of outstanding Elpida TDRs circulating in Taiwan, according to Chiu.
He said since his center began on March 28 to receive investors' request for assistance to push Elpida to buy back the outstanding TDRs, 1,189 investors, who own a total of 38.4 million units, or 70.8 percent of all outstanding TDRs, have turned to the center for help.
(By Pan Chih-yi and Elizabeth Hsu)