Print

Mail

wiki links

Business Briefs

HNA to team with Shin Kong

HNA Group (海南航空集團), the parent of China's fourth-biggest air carrier, said it plans to form a life insurer with Taiwan's Shin Kong Life Insurance Co (新光人壽) to cater to a growing number of Chinese who are seeking private risk coverage.

HNA and Shin Kong will each own 50 percent of the Beijing-based venture, Hainan Airlines Co (海南航空) chairman Chen Feng (陳鋒) told reporters yesterday, CNA reported.

Chen said the company received approval from the China Insurance Regulatory Commission for the joint venture, the report said.

"I hope it will formally start operations at the beginning of next year," the report quoted him as saying.

Chen expected to be chairman of the venture, it added.

The Chinese-language Commercial Times said earlier yesterday that Shin Kong got the nod from the commission to set up the venture, which is expected to have registered capital of 800 million yuan (US$107 million) and will begin operations in April next year.

Shin Kong declined to confirm if it had obtained China's go-ahead for the venture.

Uni-President gets a green light

The Fair Trade Commission on Thursday gave approval to Uni-President Enterprises Corp's (統一企業) acquisition of Tait Marketing and Distribution Co (德記洋行), but noted that the nation's largest food conglomerate should not abuse its market dominance to obstruct competition. Uni-President holds a 19.5 percent stake in Tait and plans to purchase 40 percent more.

The company commands more than 25 percent of the beverage market in the nation, while Tait controlled less than 2 percent since entering the market in 2004, and therefore the acquisition would not affect the market's structure, the commission said in a statement.

Uni-President has an extensive network of distribution channels such as supermarkets and convenience stores, while Tait's distribution network covers restaurants, hotels, entertainment establishments and street vendors.

After acquiring the company, Uni-President should not restrict competition in the beverage wholesale and retail market, such as by demanding distributors not sell products from competitors, the commission said.

Uni-President said in a filing to the Taiwan Stock Exchange yesterday that it would comment on the ruling after receiving documents from the commission.

NT$15bn in Taipower bonds

Taiwan Power Co (Taipower, 台電) plans to sell NT$15 billion (US$461 million) in bonds next month to help fund the construction of power plants and upgrade grids.

The utility is seeking a bank to guarantee NT$8 billion in three-and-a-half-year notes and NT$7 billion in five-and-a-half-year debt that is to be auctioned, Sam Lou, a section chief at the firm's finance department, said by telephone today.

"If it proceeds smoothly, we'll invite bids for the bonds next month," Lou said from the company's Taipei headquarters.

The auction will bring the utility's total debt sales this year to NT$40.69 billion.

Tokyo cabbies get a raise

Japan yesterday announced the first increase in Tokyo's taxi fares for 10 years, a move unlikely to soften the capital's reputation as one of the most expensive cities in the world.

Cabinet ministers on Thursday gave the green light for a 7.2 percent hike in the upper limit of the starting fare to ¥710 (US$6.20), officials said.

The fare for additional mileage after the first 2km was also raised.

The Dec. 3 increase is considered necessary to improve the drivers' working conditions.


This story has been viewed 1292 times.