Tue, Dec 30, 2008 - Page 12 News List

TCB to buy 10 percent in Belgian Bank

STAFF WRITER

Taiwan Cooperative Bank Ltd (TCB, 合作金庫銀行) plans to acquire another 10 percent stake in the Brussels-based United Taiwan Bank SA (台灣聯合銀行) from Taiwan Business Bank (TBB, 台灣企銀) for an estimated NT$140 million (US$4.24 million), local media reported yesterday.

The United Taiwan Bank in Belgium is a joint venture set up by Taiwan Cooperative Bank, Bank of Taiwan (台灣銀行), Land Bank of Taiwan (土地銀行) and TBB in 1992 to provide euro-denominated transactions including deposit and loan services, currency exchanges and inter-bank lending.

The Belgian bank has an estimated paid-up capital of NT$1.28 billion, with TCB taking a controlling 70 percent share of its equity and the remaining three banks each owning a 10 percent stake, the Chinese-language Commercial Times reported yesterday.

However, TCB only took up four seats on the European bank’s 10-member board, while each of the remaining three banks were entitled to appoint two seats, the report said.

After the stake acquisition, TCB would be entitled to appoint six of the 10 board seats, while each of the two remaining bank shareholders will retain their two seats, the report said.

The report said TCB’s latest move to acquire additional shares was aimed at complying with the Belgian financial and supervisory commission’s wish to enhance its stability.

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