Yuanta gets controlling stake in Fuhwa

The Yuanta Group (元大集團) has secured a stake of more than 27 percent in Fuhwa Financial Holdings Co (復華金控), becoming the single largest shareholder of the financial group, Yuanta announced on Thursday.

The Yuanta Group said it has recently spent about NT$9 billion (US$285 million) to purchase 510 million Fuhwa shares in the open market through two of its investment ventures. These shares represent a 17.18 percent stake in Fuhwa.

Together with nearly 300 million Fuhwa shares owned by Yuanta's brokerage unit, Core Pacific Securities Corp (元京證券), the group said it has invested more than NT$13 billion in acquiring Fuhwa shares in the open market, thereby securing a controlling stake of 27.18 percent in the nation's 12th-largest financial holding company.

To take over the helm of Fuhwa Financial Holdings in June, Yuanta reportedly may link up with government shareholders at the next board election. The Ministry of Finance currently owns a 15 percent stake in Fuhwa.

Yuanta has overtaken the Chinese Nationalist Party (KMT) as the biggest shareholder in Fuhwa. The KMT has a 20.5 percent stake in Fuhwa.

Yuanta chairman Rudy Ma (馬志玲) vowed last year that the brokerage wanted to set up a financial holding company within two years. A merger with Fuhwa would help Yuanta gain a financial holding company licence.