Taiwan Mobile Announces Tender Offer for Jingcheng Information, Targeting Majority Ownership with Nearly $30 Billion Investment

On the 12th, Taiwan Mobile announced it will launch a tender offer for ordinary shares of Jingcheng Information through its wholly-owned subsidiary, "Taiwan Telecommunications," at a price of NT$184.5 per share. The goal is to acquire at least 39% additional equity. Taiwan Mobile is already Jingcheng’s largest single institutional shareholder with a 11.86% stake. If the acquisition succeeds, Jingcheng will officially become a subsidiary of Taiwan Mobile. Huang Tsung-jen, founder of Jingcheng, has also committed to tendering his shares.

The consideration for the acquisition is 0.84 shares of Taiwan Mobile ordinary stock plus NT$92.5 in cash for every 1 share of Jingcheng Information. The Taiwan Mobile shares are sourced from "quasi-treasury shares" held by Taiwan Telecommunications in its parent company. Based on the closing prices of both companies on the 12th, the offer price represents a premium of approximately 29.5% over market value—exceeding Jingcheng’s historical high of NT$172.5. Compared to the 60-day moving average, the premium is about 32.5%. The total acquisition cost ranges from NT$19.58 billion to NT$29.13 billion.

The number of Taiwan Mobile shares to be issued is estimated between 89.19 million and 132.64 million, representing 2.4% to 3.6% of Taiwan Mobile’s total equity. The cash portion totals between NT$9.82 billion and NT$14.61 billion, to be funded by internal resources and intercompany loans within the Taiwan Mobile Group.

In September 2022, Taiwan Mobile acquired Jingcheng’s 11.86% stake from subsidiaries Jingpu Investment and Hanmao Investment for nearly NT$4 billion at NT$123 per share, becoming Jingcheng’s largest shareholder. That transaction also used quasi-treasury shares, minimizing equity dilution—a strategy repeated in this tender offer.

Lin Chih-chen, CEO of Taiwan Mobile, stated that acquiring at least 39% through Taiwan Telecommunications will raise Taiwan Mobile’s total stake to over 50.86%. The goal is to lead a deep ICT strategic alliance between Jingcheng and Taiwan Mobile in the AI era, integrating IT and CT to create synergies in cross-selling, AI, and regionalization. The company aims to double its market share in the IT services sector, with synergies boosting Taiwan Mobile’s EPS in the first year and growing annually thereafter, maximizing long-term shareholder value.

Jingcheng Information currently has a market capitalization of approximately NT$39 billion, with a 7% market share in Taiwan’s IT services sector. Last year, it reported revenue of NT$13.8 billion and net profit of NT$2.149 billion. After integration, Taiwan Mobile will consolidate Jingcheng’s revenue and profits under the equity method.

To date, the tender offer has secured consensus and tender commitments from three major shareholders and the chairman of Jingcheng, totaling over 10% of shares, indicating strong support. Full terms are detailed in the tender offer statement.

Lin emphasized that after securing majority control, Taiwan Mobile will accelerate the integration of Jingcheng’s IT capabilities with its own CT infrastructure to double enterprise IT service market share in the AI era. First-year contributions to revenue and profit are expected to be significant, with benefits compounding annually.

In 2025, Taiwan’s IT services market is projected to reach NT$659.6 billion. Taiwan Mobile and Jingcheng’s combined market share exceeds 7%, leaving substantial room for growth. Since Taiwan Mobile’s initial investment in September 2024, the two companies have launched nearly 50 enterprise solutions under a three-pronged strategy: complementary product portfolios, shared sales systems, and joint expansion into Greater Southeast Asia. Within two years, they have generated billions in synergistic revenue, with case volumes increasing tenfold year-on-year.

Once fully integrated, the combined software engineering team will reach nearly 4,500 personnel, with nearly 1,000 sales staff. With Taiwan Mobile’s support, the first year will accelerate EPS growth, with sustained benefits in subsequent years, enabling long-term compound annual revenue growth of over 20% in enterprise IT services.

Second, integrating Taiwan Mobile’s TAIDC computing power with Jingcheng’s Ai4iA solutions will maximize AI business opportunities. Lin noted that enterprise AI deployment is currently limited by insufficient computing power. Taiwan Mobile’s TAIDC01, with 25MW capacity, is already operational and will support Jingcheng’s Ai4iA business. Future investments in AIDC and high-speed networks in Taiwan, Japan, and Greater Southeast Asia will jointly capture enterprise AI service opportunities.

Lin added that Taiwan Mobile and Jingcheng share overlapping regional strategies in Asia, with existing footprints in Japan and Greater Southeast Asia. Deeper alliance will accelerate regional expansion and unlock greater international business.

Regarding shareholder support, Lin confirmed that the top three shareholders excluding state-owned Chunghwa Post have committed to tendering, totaling over 10% in tender agreements. The second-largest shareholder, Chunghwa Post (4.07% stake), has not yet committed due to procedural constraints. The Huang family chose not to sell via large-block transactions earlier to ensure equal treatment between major and minority shareholders.

If Chunghwa Post participates, half of its stake may be exchanged for Taiwan Mobile shares, indirectly making the Ministry of Transportation and Communications a shareholder of Taiwan Mobile. However, Lin stated that Taiwan Mobile cannot predict whether Chunghwa Post will tender.