Elpida Memory is slated to purchase over 10% stake in Taiwan-based ProMOS Technologies through private placement, according to market sources in Taiwan's DRAM industry.

Following a visit to Elpida by ProMOS executives last week, the Japan-based DRAM chipmaker is now certain to take up new shares to be issued by ProMOS in its planned private placement, the sources stated.

The stake held by Elpida in ProMOS could exceed 10% if the Japan-based chipmaker takes up all of the approximate one billion new shares, the sources indicated. The book value of the shares is NT$10 billion (US$329 million).

ProMOS currently has a market capitalization of NT$67.07 billion. The share price of ProMOS gained NT$0.07 to close at NT$8.22 on the Taiwan's OTC securities market on May 2.

The private placement could see a variety of outcomes, details of which the company hopes to release at an investors conference on May 8, according to ProMOS chairman ML Chen.

By: DocMemory
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