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.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
EQUITIES TAIEX moves sharply higher The TAIEX moved sharply higher yesterday as buying focused on Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) after a strong showing by its American Depositary Receipts overnight. However, the gains were capped after the benchmark index breached 13,000 points and ran into technical hurdles, prompting investors to turn cautious, dealers said. At the end of the session, the TAIEX was up 131.11 points, or 1.02 percent, at 12,976.76. Turnover was NT$206.328 billion (US$7.04 billion), with foreign institutional investors buying a net NT$18.47 billion in shares, Taiwan Stock Exchange data showed. TSMC rose 2.92 percent to close at NT$458.