Conversion Price Adjustment on 2024 First Overseas Unsecured Convertible Bonds
Original: 調整民國113年度海外第一次無擔保轉換公司債之轉換價格
Summary
Hon Hai Precision has announced an adjustment to the conversion price of its first tranche of overseas unsecured convertible bonds originally issued in ROC Year 113 (2024). Such resets are typically triggered by dividend distributions, stock splits, or contractual anti-dilution provisions, and directly affect the number of new shares bondholders would receive upon conversion—with implications for existing shareholder dilution. Full body available on MOPS.
Full Translation
Adjustment of the Conversion Price of the First Overseas Unsecured Convertible Bonds for ROC Fiscal Year 113 (2024). Hon Hai Precision Industry Co., Ltd. (鴻海精密工業股份有限公司) has disclosed a revision to the conversion price applicable to its inaugural offshore unsecured convertible bond issue of 2024. Under Taiwan's Company Act and relevant TWSE rules, convertible bond indentures typically require the issuer to reset the conversion price upon occurrence of specified events such as cash dividend distributions, rights offerings, or share consolidations/splits; the adjusted price determines the conversion ratio at which bondholders may exchange their bonds for common shares. A lower conversion price increases potential share issuance and dilution to existing equity holders, while a higher price does the opposite. Investors holding the 2024 First Overseas CB or the underlying equity should review the full announcement for the effective date, the old and new conversion prices, and the triggering event. [Body not available — subject line only. See MOPS for full announcement.]