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Tsann Kuen Enterprise to become listed on NASDAQ
EQUITIES:
The local home appliance manufacturer vows to stick with its core businesses while at the same time striving to become a world-class distributor
By Annabel Lue
STAFF REPORTER
Tuesday, Oct 16, 2001, Page 17
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"After Taiwan enters the WTO, I believe that only companies with economies of scale, in terms of size and funding, can survive."
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Wu Tsann-kuen, CEO of the Tsann Kuen Group
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A subsidiary of a Taiwan-based home appliance manufacturer Tsann Kuen Enterprise Co (Àé©[¹ê·~), is planning to list on the NASDAQ on Oct 22.
That subsidiary -- Eupa International Corp -- also serves as the brand name for the company's products, "EUPA."
According to a company executive, the move is designed to generate more funds for business expansion.
"The listing is expected to boost Tsann Kuen USA's capitalization from US$2.4 million to more than US$100 million," said Wu Tsann-kuen (§dÀé©[), CEO of the Tsann Kuen Group.
"I think in order to become a major international company we have to find more channels besides Taiwan and China for fundraising ? that's why I have tried to gain access to the NASDAQ for many years."
And while Wu may get NASDAQ membership, he didn't use the traditional methods.
Eupa will gain its NASDAQ listing by purchasing the shares of the Internet networking firm Access Network Corp, and then change the name, taking their NASDAQ seat.
Wu said that the US market is a more feasible place to raise capital as "the funding regulations in the US are looser than in Taiwan and China.
"After Taiwan enters the WTO, I believe that only companies with economies of scale, in terms of size and funding, can survive," Wu said.
Matthew Jones, vice president of the New York-based World Financial Group Inc, the firm that will facilitate the transaction, said the listing price won't be announced until the first day of trading.
He said that Eupa International's current market value is between US$100 million and US$200 million.
Wu said that the Tsann Kuen Group will remain focused on its two core businesses -- manufacturing and distribution.
"We would like to be positioned like [electronics retailer] Best Buy in the US market -- as a B2C [business to customer] appliance outlet," Wu said. "I aim to make Tsann Kuen a world-class distribution network."
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