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Publish Date : 09-May-2014

Taiwan Star Cellular Corp. an telecom arm of conglomerate Ting Hsin International Group, said it is seeking to acquire Asia Pacific Telecom Co. in a bid to consolidate the resources of the 2 companies.

The company is sitting on a huge fund and has a 4G license, a broad distribution network and plenty of talent for business expansion.

The merger with Asia Pacific Telecom is expected to create synergies between the two companies and boost Taiwan Star's competitive edge.

Taiwan Star formally proposed to buy Asia Pacific Telecom, other companies such as Japan-based SoftBank Group and Hon Hai Group's Ambit Microsystems Corp. are also eying Asia Pacific Telecom.

Asia Pacific Telecom denied rumors of an acquisition deal with Taiwan Star but got a boost in the stock market as a result of the speculations.

Taiwan Star is one of two new telecom services providers in Taiwan that secured a 4G telecom license in October 2013.

4 other telecom operators already provide 3G services in Taiwan, Asia Pacific Telecom, Chunghwa Telecom Co., Far EasTone Telecommunications Co. and Taiwan Mobile Co., have obtained 4G licenses.

A telecom operator needs large economies of scale to strengthen its competitive edge and a merger with Asia Pacific Telecom will help the company compete with Chunghwa Telecom.

The merger allows the 2 companies to share their resources, including their base stations, and to gain greater bargaining power when buying cell phones.

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