Yuanta Financial Holding Co (元大金控) yesterday called off a press conference at the Taiwan Stock Exchange just hours after approving plans by its securities arm to join a court auction for a controlling stake in a South Korean peer, Tongyang Securities.
The briefing was cancelled at 4:45pm, 15 minutes before the scheduled start time. Yuanta Financial said not all the necessary documents had been prepared.
Its board of directors had earlier agreed to allow its main subsidiary, Yuanta Securities (元大寶來證券), to take part in the bidding for a controlling stake in the struggling Tongyang.
Yuanta Financial also approved plans to partner with three Chinese firms in setting up a securities house in Shenzhen, China, it said in a separate stock filing. The investment is estimated at NT$3.85 billion (US$126 million), or 765 million yuan, and the new brokerage would have registered capital of 1.5 billion yuan, it said in the filing.
Yuanta Financial is to own 51 percent of the joint venture’s shares. The plan must first be approved by the Financial Supervisory Commission, but Yuanta Financial may not file an application until after the cross-strait service trade pact clears the legislature.
Shares in Yuanta Financial ended down 0.62 percent at NT$16.1 in Taipei trading yesterday.