China Development Financial Holding Co (
The debt write-off is sure to weigh on the prospects of the nation's 12th-largest financial provider, erasing 20 percent of its profit target of NT$20 billion for this year.
The company's filing stated that its subsidiaries -- China Development Industrial Bank (中華開發工銀), which had held NT$3.125 billion in convertible bonds in Cosmos, and Grand Cathay Securities Co (大華證券), which had held NT$4.625 billion in subordinated debts in Cosmos -- posted NT$1.8125 billion and NT$2.6825 billion in losses respectively after the debt-to-equity conversion.
Despite market speculation that China Development spent NT$2 on each of Cosmo's shares, the company yesterday refused to comment on its shareholding in Cosmos.
Negotiations on the debt-to-equity scheme are still ongoing, the company said.
Nevertheless, Cosmos, which had been under increasing regulatory pressure to recapitalize or face government receivership after it suffered considerably from the default of unsecured consumer loans, yesterday finalized an agreement to sell a controlling stake to the SAC Private Capital Group LLC, a US hedge fund, and to GE Money, the global consumer lending unit of General Electric Co. SAC and GE Money agreed in principle to invest US$650 million and US$250 million respectively.
After SAC and GE's takeover, Cosmos is expected to reshuffle its board and top management at its next meeting scheduled for Dec. 5.
Cosmos' capital would be boosted from NT$45 billion to NT$200 billion, including the fundraising proposal passed yesterday.
The Financial Supervisory Commission's latest statistics show that Cosmos' non-performing loans ratio deteriorated slightly to more than 5 percent last month, from 4.6 percent in August. The bank recorded NT$47.3 billion in cash-card loans last month.
DAMAGE REPORT: Global central banks are assessing war-driven inflation risks as the law of unintended consequences careens around the world, spiking oil prices Central banks from Washington to London and from Jakarta to Taipei are about to make their first assessments of economic damage after more than two weeks of conflict between the US and Iran. Decisions this week encompassing every member of the G7 and eight of the world’s 10 most-traded currency jurisdictions are likely to confirm to investors that the specter of a new inflation shock is already worrying enough to prompt heightened caution. The US Federal Reserve is widely expected to do exactly what everyone anticipated weeks ahead of its March 17-18 policy gathering: hold rates steady. The narrative surrounding that
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) share of the global foundry market rose to almost 70 percent last year amid booming demand for artificial intelligence (AI), market information advisory firm TrendForce Corp (集邦科技) said on Thursday. The contract chipmaker posted US$122.54 billion in revenue, up 36.1 percent from a year earlier, accounting for 69.9 percent of the global market, TrendForce said. Its share was up from 64.4 percent in 2024, it said. TSMC’s closest rival, Samsung Electronics, was a distant second, posting US$12.63 billion in sales, down 3.9 percent from a year earlier, for a 7.2 percent share of the global market. In the
HEADWINDS: The company said it expects its computer business, as well as consumer electronics and communications segments to see revenue declines due to seasonality Pegatron Corp (和碩) yesterday said it aims to grow its artificial intelligence (AI) server revenue more than 10-fold this year from last year, driven by orders from neocloud solutions clients and large cloud service providers. The electronics manufacturing service provider said AI server revenue growth would be driven primarily by the Nvidia Corp GB300 server platform. Server shipments are expected to increase each quarter this year, with the second half likely to outperform the first half, it said. The AI server market is expected to broaden this year as more inference applications emerge, which would drive demand for system-on-chip, application-specific integrated circuits
At a massive shipyard in North Vancouver, Canadian workers grind metal beams for a powerful new icebreaker crucial to cementing the country’s presence in the increasingly contested arctic. Icebreakers are specialized, expensive vessels able to navigate in the frozen far north. And “this is the crown jewel,” said Eddie Schehr, vice president of production at the Seaspan shipyard. For Canadian Prime Minister Mark Carney, who heads to Norway next Friday to observe arctic defense drills involving troops from 14 NATO states, Canada’s extreme north has emerged as a strategic priority. “Canada is and forever will be an Arctic nation,” he said ahead of
RSS