Date: March 12, 2009
The President and Member of the SIAS Corporate Governance Committee had a detailed discussion with Chia Song Hwee, CEO and Tiffany Sparks, Senior Director, Corporate Marketing of Chartered Semiconductor Manufacturing Ltd at the request of the company regarding its recently announced rights issue. The meeting was at the instance of the company.
Mr. Chia briefed SIAS on how Chartered has improved its performance and increased its market share in leading-edge technology. The company highlighted its need to strengthen the balance sheet, increase financial flexibility and preserve customer confidence. SIAS appreciates that Chartered has made positive strides in its business over the past few years.
SIAS discussed with Mr Chia the availability of other options, and after hearing the management, SIAS is satisfied that the rights issue was the best option for the company. SIAS also understands that Chartered had fully considered the impact on its shareholders in the current economic environment, and that the rights issue was only decided on after exhausting all other options.
SIAS is pleased to note Mr. Chia’s assurance that there will not be another rights issue in the near future.
SIAS applauds Chartered’s pro-active steps in reaching out to its investors and seeking to address their concerns. SIAS believes that Chartered has a good story and together with Chartered, plan to organise a forum session in the coming weeks, so that investors can have a face to face discussion and address their concerns with the management.
David Gerald
For Management Committee
Securities Investors Association (Singapore) | 75 Neil Road Singapore 088902 | Tel: 65 62272683 |
