■ Chinatrust bids for Lippo
Chinatrust Financial Holding Co (中信金控), Taiwan's fourth-biggest financial services company, and Export and Industry Bank of the Philippines said they may bid to buy 52 percent of PT Lippo Bank, Indonesia's 11th-largest lender.
Yesterday was the deadline for investors to submit bids for the stake, which is valued at 918 billion rupiah (US$109 million) at the current market price. The winning bidder will be named at the end of the month.
"We already have some operations in Southeast Asia and we believe we have more expertise than other Taiwanese banks to run the business in the region," said Lin Shiaw-ping (林孝平), Chinatrust Financial's chief strategic officer.
Indonesia is selling stakes in banks and other distressed assets to raise funds to cover a budget deficit estimated at 24.4 trillion rupiah (US$2.9 billion) this year, or 1.2 percent of the country's GDP.
■ Fitch positive about banks
The outlook for the nation's banking sector is becoming more positive, after several years of deterioration, Fitch Ratings said in a statement yesterday.
"Taiwan's banking sector is expected to see further progress in its restructuring efforts that were launched in 2002 when many, though not all, banks took large charges to cover the cost of non-performing loan [NPL] sales and charge-offs," Fitch said.
In addition to writing off NPLs, Taiwanese banks have been rebuilding their capital base, improving their formerly very unsophisticated credit culture and diversifying away from traditional corporate loans toward consumer banking.
Despite these positive achievements, the international rating agency said challenges remain for Taiwanese banks. "As banks have come into line with regulatory guidelines concerning asset quality, there is less urgency in addressing remaining bad debts. There is also uncertainty over the source of capital support for weak banks," it said.
With a fragmented market in their home market, further consolidation appears inevitable for Taiwanese banks and many of them will target overseas expansion in the Greater China, Fitch said.
■ New medicine shop opens
Beijing Tongrentang Typhoon Co (北京同仁堂太豐公司), a Taiwan-based offshoot of a Chinese company that made medicine for the emperor, yesterday opened its first shop in Taipei, tapping growing demand for traditional remedies.
The Taiwanese-owned licensee plans to set up 60 shops in Taiwan within three years, Gloria Yang, the manager of the store, said in a telephone interview. The shop's products include herbs imported from China and herbal wines made in Taiwan according to Beijing Tongrentang's recipes, she said.
"Taiwan's health market is mature now, presenting opportunities that allow us to set up our first flagship," Yang said.
■ AU Optronics sales rise
Taiwan's largest maker of panels for flat-screen displays, AU Optronics Corp (友達光電), yesterday reported net sales for last year of NT$104.8 billion, up 38.5 percent from the previous year.
Shipments of large-size panels at the company totaled 11.85 million last year, up 42.4 percent from 2002, and medium-sized panel shipments increased by 135.7 percent to 21.43 million units over the same period, according to company statistics.
■ NT dollar strengthens
The New Taiwan dollar continued to gain ground against its US counterpart, edging up NT$0.021 to close at NT$33.809 on the Taipei foreign exchange market.
RSS