Taiwan may list the nation’s largest financial-services company next year and is in talks to sell shares in its biggest tobacco company, Minister of Finance Lee Sush-der (李述德) said.
An initial public offering of state-owned Taiwan Financial Holdings Co (台灣金控) may take place “sometime next year,” Lee said in an interview in Manila yesterday.
The government hasn’t determined the value of the stake to be sold, and is in talks with the labor union on a possible sale of shares in Taiwan Tobacco & Liquor Corp (台灣菸酒公司), he said.
Lee’e remark came after the Taipei-based Economic Daily News reported on Monday that the government plans to sell a 10-percent stake in Taiwan Financial at NT$26.3 (US$.80) per share.
The share sale is likely to bring in NT$23.7 billion for the state coffers, the Chinese-language newspaper reported, citing a budget book the Ministry of Finance plans to submit to the legislature for review in September.
The government combined the Bank of Taiwan (臺灣銀行) with its securities and life insurance units to create Taiwan Financial last year and spur local financial companies to merge.
The share sale may bring in more foreign competition, with China and Taiwan planning to allow cross-strait investment between financial firms.
“This is negative for the banking sector,” said Julie Chu, an analyst at SinoPac Securities Corp (永豐金證券) who rates the Taiwan banking industry “positive.”
“Taiwan’s banking industry is already congested. By having another stake owner, especially if it’s a foreign company, it could mean more competition in the already small market,” she said.
Taiwan’s financial industry had 37 local banks, 32 foreign lenders and more than 300 credit associations serving 23 million people as of January, the Financial Supervisory Commission’s Web site says.
The newspaper, citing unnamed ministry officials, said Taiwan Financial may increase the size of share sales to 40 percent from the initial 10 percent. On May 19, Taiwan Financial’s chairwoman Susan Chang (張秀蓮) said the company had suggested the government a share sale plan of as much as 40 percent through an IPO.
The ministry also plans to sell 21 percent of state-owned Taiwan Tobacco and list the company by the end of the year, the newspaper reported, citing unnamed officials.
In Manila, Lee said the ministry did not have a “definite timetable” for the sale.
Taiwan Tobacco is the nation’s the biggest tobacco company, KGI Securities Co (凱基證券) trader Randy Chang (張修華) said.
ADDITIONAL REPORTING BY STAFF WRITER
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,