Yuanta Core Pacific Securities Co (元大京華證券), the nation's largest brokerage firm, yesterday secured a majority of board seats at Fuhwa Financial Holding Co (復華金控) as expected, in a step toward completing a drawn-out merger deal in the first quarter of next year.
During a provisional shareholders' meeting yesterday, Yuanta Core Pacific, Fuhwa Financial's largest shareholder, which controls a 45 percent stake along with its supporters, grabbed six out of nine board seats and two of three supervisor spots in the nation's eleventh-biggest financial group by assets.
Another major shareholder, Central Investment Holding Co (
A board meeting will be convened next Tuesday to select a chairman, according to Yuanta Core Pacific.
Central Investment, which opposes Yuanta Core Pacific's take-over attempt, said it will file a lawsuit to invalidate the selection result for board members and supervisors.
The tussle has delayed the proposed merger deal by one year, with Central Investment gunning against Yuanta Core Pacific's offer.
Yuanta Core Pacific has proposed swapping one of its shares for 1.5 to 1.7 Fuhwa Financial shares.
Central Investment wants Yuanta Core Pacific to propose a more "reasonable" share swap ratio, the company's president Steve Wong (汪海清) said on the sidelines of the meeting. However, he was tight-lipped about what ratio Central Investment would deem acceptable.
Fuhwa Financial's board is expected to review and discuss the merger deal later this year and decide on the share swap ratio, Fuhwa Securities Co (
The merger is expected to take effect in the first quarter of next year, while the actual integration of the firms could be completed by the middle of next year, he added.
"The projected merger will allow us to get an independent cash flow channel through Fuhwa Bank (復華銀行)," Yuanta Core Pacific Spokesman Lawrence Lee (李雅彬) said.
Under the current regulations, securities houses like Yuanta Core Pacific face tighter government rules regarding capitalization and investment than those commercial banks must follow, he said.
According to Yuanta Core Pacific's merger plan, the brokerage will first merge with Fuhwa Securities. The new brokerage entity will then cut its capital by at least NT$10 billion (US$304 million) and will return those proceeds to the parent, Fuhwa Financial.
Lee said that Fuhwa Financial may use the funds to strengthen Fuhwa Bank's capitalization and asset quality.
The proposed merger will have a positive impact on Fuhwa Bank's ratings, provided that Yuanta Core Pacific, which boasts strong capitalization, secures majority control of its parent group, Fitch Ratings said on Monday in a press release.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion