Shinkong Financial Holding Co (新光金控), the nation's eighth-largest financial services provider by assets, is looking to form a strategic partnership with a world-class financial group that has the cross-border experience and know-how to help it expand overseas, company spokesman Victor Hsu (許澎) said in a phone interview yesterday.
"A large number of foreign financial institutions have expressed interest in establishing a cooperation relationship within the past year," Hsu said.
The strategic partnership will be formed through the issuance of up to NT$7 billion (US$215.74 million) in common shares through a private placement within one year, he said.
This would translate into a 5 percent to 7 percent stake in the financial holding firm, based on a tentatively set price of NT$28 per share, he said.
Shinkong Financial has NT$40.7 billion in capitalization.
The board of directors has designated company chairman Eugene Wu (
The company may use the funds for acquisitions, he added.
Last month, Temasek Holdings of Singapore bought a 15 percent stake in E.Sun Financial Holding Co (玉山金控) for US$400 million, while Newbridge Capital of the US and Nomura Group of Japan jointly invested NT$31 billion in Taishin Financial Holding Co (台新金控) in February.
The board of Shinkong Financial yesterday also decided to distribute dividends of NT$1.3 per share, comprising NT$0.65 in cash and the remainder in stock.
The company reported that first-quarter net profit reached NT$7.14 billion, or NT$1.76 per share, the highest among the nation's 14 financial groups. This, despite the fact that its banking arm incurred a net loss of NT$1 billion after setting aside NT$2 billion in provision expenses to cover consumer bad debts.
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