Delta Electronics to issue overseas bonds for business expansion

Taipei, Jan. 14 (CNA) Delta Electronics Inc. said Tuesday that it will issue more than US$500 million worth of overseas exchangeable bonds through its Thai subsidiary.

In a statement, the Taiwanese power management solution provider said a board meeting of its subsidiary Delta International Holding (DIH) had approved a plan to sell US$525 million worth of overseas exchangeable bonds with a goal "of enriching the working capital for enhancing the current business operations and facilitating future expansion."

The bonds will be sold in face value of US$200,000 with a zero coupon rate, and will be due on Jan. 21, 2030, Delta Electronics said.

Delta Electronics said the securities will be exchangeable into shares of Delta Electronics (Thailand) Public Co. Ltd. with a conversion price of 187.6 Thai baht (US$5.41), which represents about a 40 percent premium over a reference price.

On the exercise of the exchange right, holders of the bonds will initially be entitled to receive 37,086.3539 shares of Delta Thailand for each US$200,000 principal amount of the bonds, subject to adjustment in the manner provided in the terms and conditions of the bonds, Delta Electronics said.

Bond holders will also have the right to require DIH to redeem all or some of such bond holders' bonds at 106.31 percent of their principal amount in the third year into the issuance, Delta Electronics added.

Delta Electronics said the company is aggressively expanding its production, research and development as well as sales/service capability globally to ride waves of artificial intelligence, smart manufacturing, electric vehicles and energy-saving solutions.

The power management solution provider said its investments are spanning over Thailand, India, Japan and Europe, and through the bond sale to raise funds, DIH is expected to optimize the efficiency of its working capital and support its business expansion endeavors.

In 2024, Delta Electronics generated NT$421.15 billion (US$12.77 billion) in consolidated sales, which hit a new high and rose 4.9 percent from a year earlier.

In December alone, Delta Electronics's consolidated sales stood at NT$38.74 billion, the second highest level only trailing NT$38.82 billion seen in October, and up 22.2 percent from a year earlier, with its power management division accounting for 48 percent of the total sales, ahead of 32 percent in infrastructure, 13 percent in automation and 7 percent in transportation.

Delta Electronics shares staged a rebound from a 4.76 percent slump a session earlier, rising 2.50 percent to close at NT$410.00 on the Taiwan Stock Exchange Tuesday.