Sat, Apr 09, 2011 - Page 12 News List

Taiwan Mobile eyes Fubon Multimedia

By Lisa Wang  /  Staff Reporter

Taiwan Mobile Co (台灣大哥大) yesterday said it planned to spend NT$8.35 billion (US$288 million) to acquire a controlling stake in the nation’s No. 2 TV shopping channel operator, Fubon Multimedia Technology Co Ltd (富邦媒體科技), in a move to boost non-voice revenues.

The nation’s second-biggest telecoms operator said in a statement it would buy a 51 percent share of Fubon Multimedia from a venture fund managed by parent company Fubon Financial Holding Co (富邦金控).

The acquisition would help the phone company tap into TV shopping, Internet shopping and retail businesses in Taiwan and China, Taiwan Mobile told investors in a teleconference.

The deal “will enhance Taiwan Mobile’s future growth momentum and increase non-voice service revenues,” the company said.

Fubon Multimedia is expected to boost Taiwan Mobile’s annual net income by NT$0.15 per share, the company said.

Fubon Multimedia, which operates the MoMo TV shopping channel, made NT$14.77 billion last year with the biggest portion, or 53 percent, coming from its TV shopping business. Fubon Multimedia posted NT$1.04 billion in net profits for last year, up 8 percent from NT$826 million in 2009.

The transaction needs the approval from the Fair Trade Commission, the nation’s competition watchdog.

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