PHILIPPINE-LISTED South Korean firm Phoenix Semiconductor Philippines Corp. said it received more than $100 million in capital infusion by a new investor through convertible bonds.
The company said its parent firm Seoul-based STS Semiconductor and Telecommunications Co. Ltd. approved the infusion by SFA Inc. of some $116.32 million. The convertible bonds to be issued carry a warranty, while STS will issue capital shares from its unsubscribed capital stock.
“The financial commitment will serve to support the operational infrastructure of the group, as it faces continued growth prospects,” the company said.
The company said the convertible bond, worth $25.89 million, will be remitted to STS on August 10. The $26.16 million in bonds with warranty will also be issued to STS on the same day and the capital shares of about $64.26 will be remitted to STS on August 25.
“STS and its Pampanga-based subsidiary, PSPC, continues to see positive growth with the capital infusion following a recent commitment from Samsung Electronics Co. Ltd. of continued business transactions with the group,” the company said.
Phoenix Semiconductor is one of the largest outsourced assembly and test facilities in the region and has long been the preferred supplier of global electronics giant.
Samsung earlier sent a formal letter to inform Phoenix Semiconductor, which has facilities in Clarkfield in Pampanga, stating that it will continue to do business with the company based on its business-agreement transaction signed in July 2010.
“The letter was issued by Samsung on June 19, 2015, to assure STS that it will fulfill the production contract with [Phoenix] as a preferred outsourced semiconductor assembly and test provider for memory cards, chips and modules,” the company said.
The letter, signed by Jae Hun Lee from Samsung’s TP Group, was in reaction to the joint administration proceedings undertaken by STS with its creditor-banks as a result of the rehabilitation plan submitted by the latter’s affiliate, BKE and T Co. Ltd. whose loans it had guaranteed.
The company listed its shares in the Philippine Stock Exchange in December last year, undertook a P1.02-billion initial public offering to finance the expansion of its Samsung-dedicated manufacturing facility in Clark Freeport and to construct a second plant to cater to non-Samsung customers in the latter part of 2015.