Simple Mart Retail's (TPE:2945) board approved to subscribe to 30 million shares in subsidiary OKMart for NT$300 million, according to a Tuesday Taiwan Stock Exchange filing.
Shares slid about 2% in Wednesday's late morning trade.
The shares will be subscribed at NT$10 each through a cash capital increase, with payment to be made in a lump sum.
Simple Mart currently holds 162 million OKMart shares, representing a 100% stake.
Simple Mart said the subscription will strengthen OKMart's working capital and expand its business operations.
The funds will come from Simple Mart's own funds and bank loans, it said.