E.Sun Financial Holding Co (玉山金控) yesterday announced that it was forming a partnership with Singapore-based Temasek Holdings Ltd, selling US$400 million of convertible bonds to Asia Financial Holdings Pte Ltd, Temasek's wholly owned subsidiary.
Asia Financial Holdings -- which will make the investment through its 100 percent-controlled subsidiary Adahlis Holdings BV -- will become E.Sun Financial Holding's largest institutional shareholder, with a 15 percent stake, after the conversion of bonds is completed in 2008, E.Sun Financial's spokesman Tu Wu-lin (
Asia Financial Holdings will gain one seat on E.Sun Financial's 13-member board in the shareholders meeting in June after converting the bonds into a 5 percent stake at NT$21.21 per share in one month, Tu said.
The Singaporean firm could obtain a total of two to three seats following the conversion of the rest of the bonds at NT$24.36 per share two years from now, he added.
E.Sun Financial will use the proceeds to strengthen its capital adequacy ratio and for potential merger and acquisition (M&A) activities, Tu said.
"We will not give up any M&A opportunities in the future to sustain our development," he said.
He declined to say whether the company was engaged in any merger talks at the moment.
"We are positive about the partnership amid the recent lackluster [performance of the] finance sector," said Vincent Chang (
Separately, Taishin Financial Holding Co (台新金控) yesterday signed contracts with Newbridge Capital of the US and Nomura Group of Japan, which had agreed to invest a combined NT$31 billion in the local finance group through a private placement last month.
The deal will enable Taishin Financial to strengthen its capital structure and adequacy while building up its leading position in the nation's finance sector, the company said in a statement released yesterday.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
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Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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