Leading Japanese mobile phone operator NTT DoCoMo Inc may scale back a planned investment in a Taiwanese joint venture after suffering losses on other investments overseas, a report said yesterday.
DoCoMo was expected to take a 20 percent stake in the company to be formed from the merger of Far EasTone Telecommunications Co (
As the merger would reduce DoCoMo's stake in the combined company to 5 percent from the 21.4 percent which it already owns in KG, the Japanese firm was forecast to purchase a 23 percent stake in the new venture, according to the newspaper.
Far EasTone, Taiwan's third-largest mobile phone service provider, is partially held by US telecoms giant AT&T.
"However, people close to the deal say DoCoMo wanted to delay the decision on whether to increase its stake by at least a year," the daily said, adding such a delay could force AT&T to sell its shares to someone else.
DoCoMo was under increased pressure from investors to stop earmarking funds for foreign ventures after suffering a massive writedown in the value of such investments, according to the London-based newspaper.
A DoCoMo spokesman declined to comment on the report, but said the mobile phone giant had no plans for additional investment in Taiwan.
"It is expected that our share in the new entity would be smaller [than the 21.4 percent share in KG Telecom]," he said.
The planned merger would create the nation's second-biggest mobile phone operator, the Finan-cial Times said.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a