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.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
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