1.Date of the board of directors resolution for the change: 2017/09/22
2.Dates of effective registration of the original plan: 2017/05/26
3.Reason or the change:
(1)The funds raised was planned to repay principal when the bondholders of SKFH 2014 third issue of domestic unsecured convertible corporate bonds exercise the put option. But until 2017/08/27, the record date to exercise
the put option of the third issue of domestic unsecured convertible corporate bonds, the amount of put option exercised was only NT$41,500,000, leaving NT$3,958,500,000 from the raised amount unused.
(2)Considering the original plan was to repay debt obligation and to effectively utilize funds, the Company plans to change part of the funds utilization items to repaying bank loans. This will save interest expense and
ease financial stress.
4.Content of each and every successive past changed plan for raising of funds before and after change:
(1)Before change:
Item                                                                    Required amount
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a.To repay the third issue of domestic               NT$4,000,000,000
unsecured convertible corporate bonds
(2)After change:
Item                                                                       Required amount
=====================================================================
a.To repay the third issue of domestic                NT$1,300,000,000
unsecured convertible corporate bonds
b.To repay bank loans                                         NT$2,700,000,000
5.Anticipated timetable for execution:
(1)To repay the third issue of domestic unsecured convertible corporate bonds:
a.To repay NT$41,500,000: Execution to be completed in the third quarter of 2017.
b.To repay NT$1,258,500,000: Execution to be completed in the third quarter of 2019.
(2)To repay bank loans: Execution completed in the fourth quarter of 2017.
6.Anticipated completion date:
(1)To repay the third issue of domestic unsecured convertible corporate bonds:
a.To repay NT$41,500,000: Expect to complete by the third quarter of 2017.
b.To repay NT$1,258,500,000: Expect to complete by the third quarter of 2019.
(2)To repay bank loans: Expect to complete by the fourth quarter of 2017.
7.Anticipated possible benefits:
(1)To repay the third issue of domestic unsecured convertible corporate bonds: Expect to save interest expense by NT$5,417,000 in 2017.
(2)To repay bank loans: Expect to save interest expense by NT$4,483,000 in 2017.
8.Difference with original anticipated benefits:
(1)To repay the third issue of domestic unsecured convertible corporate bonds: The amount of interest expense which can be saved decreases NT$11,250,000.
(2)To repay bank loans: The amount of interest expense which can be saved increases NT$4,483,000.
9.Effect of the current change on shareholder equity:
The Company changes the funds utilization plan to retain credit line and remain stable revolving capacity, so as to meet the needs for economic changes and financial plans, which will help increase funds utilization and flexibility, as well as improve financial structure.
In the long run, the change of plan has no significant effect on shareholder equity.
10.Abstract of the original lead underwriter’s appraisal opinion:
The change of plan is because the majority of bondholders of the third issue of domestic unsecured convertible corporate bonds did not exercise the put option, leaving some raised amount unused. Considering the plan was
to repay debt and improve fund utilization, the Company planned to use the unused fund to repay bank loans to increase effectiveness of funds utilization and improve financial structure, so the change of plan is reasonable and necessary.
11.Any other matters that need to be specified: None