Item 1
AU Optronics Corp.
March 24, 2014
English Language Summary
Subject: To announce the disposal of long-term equity investment
Regulation: Published pursuant to Article 2-20 of the Taiwan Stock Exchange's Operating Procedures for the Publication of Material Information by Listed Companies
1. Name and nature of the subject matter (if preferred shares, the terms and conditions of issuance shall also be indicated, e.g.dividend yield):
Common Stock of Sungen Power Corporation
2. Date of occurrence of the event: 2014/3/24
3. Volume, unit price, and total monetary amount of the transaction:
Volume: 26,370 thousand shares
Unit price: NT$14.1714 per share
Total monetary amount: NT$373.7 million
4. Counterpart to the trade and its relationship to the Company (if the trading counterpart is a natural person and furthermore is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed):
Counterpart to the trade: Star River Energy Corporation Preparatory Office
Relationship to the Company: AUO is one of the promoters of Star River Energy Corporation
5. Where the counterpart to the trade is an actual related party, a public announcement shall also be made of the reason for choosing the related party as trading counterpart and the identity of the previous owner (including its relationship with the company and the trading counterpart), price of transfer, and date of acquisition:
To liquidate long-term investment and enhance efficiency of fund usage; N/A; N/A; N/A
6. Where a person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person’s relationship to the company at those times:
7. Matters related to the creditor's rights currently being disposed of (including types of collateral of the disposed creditor's rights; if the creditor's rights are creditor's rights toward a related person, the name of the related person and the book amount of the creditor's rights toward such related person currently being disposed of must also be announced):
8. Anticipated profit or loss from the disposal (not applicable in cases of acquisition of securities) (where originally deferred, the status or recognition shall be stated and explained):
After Star River Energy Corporation has completed its set up registration process, AUO will recognize appropriate amount based on related accounting principles
9. Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important stipulations:
10. The manner in which the current transaction was decided, the reference basis for the decision on price, and the decision-making department:
The Board of AUO resolved to sell common stocks of Sengen Corporation and authorized the chairman to deal with the transaction.
11. Current cumulative volume, amount, and shareholding percentage of holdings of the security being traded (including the current trade) and status of any restriction of rights (e.g.pledges):
Current cumulative volume: None
Current cumulative amount: None
Shareholding percentage of the holding: None
12. Current ratio of long or short term securities investment (including the current trade) to the total assets and shareholder's equity as shown in the most recent financial statement and the operating capital as shown in the most recent financial statement:
Current ratio of long or short term securities investment (including the current trade)to the total assets on the standalone financial statements: 16.8%
Current ratio of long or short term securities investment (including the current trade)to the shareholder's equity on the consolidated financial statements: 42.5%
The operational capital on the standalone financial statements: NT$ -22,208.9 million
13. Broker and broker's fee:
Broker: China Development Industrial Bank
Broker's fee: NT$1.96 million of successful fee
14. Concrete purpose or use of the acquisition or disposition:
To liquidate long-term investment and enhance efficiency of fund usage
15. Net worth per share of company underlying securities acquired or disposed of: NT$11.16
16. Do the directors have any objection to the present transaction?: No
17. Has the CPA issued an opinion on the unreasonableness of the price of the current transaction?: No
18. Any other matters that need to be specified:
AUO signed a binding letter of intent with Star River Energy Corporation Preparatory Office regarding the disposal of Sungen Power Corporation. A formal sale and purchase agreement will be signed after Star River Energy Corporation has completed its set up registration process.