Fuhwa to be renamed after merger next week

Fuhwa Financial Holding Co (復華金控), the nation's 11th-largest financial group by assets, will be renamed Yuanta Financial Holding Co (元大金控) after the merger with Yuanta Core Pacific Securities Co (元大京華證券) takes effect next Monday, Yuanta executives said yesterday.

Through the merger, the company is hoping to become one of the nation's top five financial holding firms in terms of earnings within two years, Yuanta chairwoman Judy Tu (杜麗莊) said yesterday.

NT$3 billion loss

Fuhwa incurred a loss of NT$3 billion (US$90.8 million) last year, the Financial Supervisory Commission's data showed.

Fuhwa chairman Yen Ching-chang (顏慶章) will continue to chair the newly merged entity, while Tu's son Ma Wei-chien (馬維建), chairman of Fuhwa Securities Finance Co (復華證金), will take up the presidency, Tu said.

Tu said the new financial group plans to use NT$20 billion in funds obtained from Yuanta to improve the financial structure of its banking arm and to acquire rivals.

Audit committee

Fuhwa plans to hold its annual general meeting on June 29 to reselect board members, including three independent directors, and to set up an audit committee -- a first for a financial holding company in Taiwan.

Since lawmakers moved on Wednesday to prevent the government from disposing of its stake in state-run banks, the Ministry of Finance said it would attempt to secure one seat at the shareholders' meeting.

Yuanta and allied shareholders control around 45 percent of Fuhwa. The government holds about 14 percent and Central Investment Holding Co (中央投資), representing the Chinese Nationalist Party (KMT), has a 22 percent stake in the financial group.