Cathay bid gets green light
The Financial Supervisory Commission yesterday approved an application by Cathay Life Insurance Co (國泰人壽), the life insurance arm of Cathay Financial Holding Co (國泰金控), to acquire a 100 percent stake in US-based investment management services provider Conning Holdings Corp for NT$7.35 billion (US$234.8 million). In November last year, Cathay Life said its board decided to purchase Conning and all of its subsidiaries for US$240 million from Aquiline Capital Partners LLC and other shareholders. Cathay Financial said the deal is a significant step toward the firm’s goal of building a complete financial services platform with expertise in asset management, banking and insurance.
FSC fines three lenders
The Financial Supervisory Commission (FSC) yesterday fined a number of lenders a total of NT$8 million for violations of the Banking Act (銀行法), citing poor internal controls and lack of compliance. Bank SinoPac (永豐銀行) was fined NT$4 million, while Deutsche Bank Taipei and BNP Paribas Taipei were fined NT$2 million each, the commission said in a statement.
Career to buy back shares
Career Technology Co Ltd (嘉聯益), a supplier of flexible printed circuit board for Apple Inc’s iPads, yesterday said its board had decided to implement a stock buyback plan, beginning yesterday and running through Aug. 7. The stock closed 2.79 percent lower at NT$20.90 yesterday before the company unveiled the plan. The board agreed to buy back up to 5 million shares, or 1.54 percent of its issued capital, at a price of NT$16.60 to NT$40 per share, Career said in a filing with the Taiwan Stock Exchange. The company plans to spend up to NT$3.93 billion on the buyback and cancel the shares in a bid to increase earnings per share for its shareholders, the filing said.
Innolux market share rises
Innolux Corp (群創) saw its share of the global TV and PC panel market edge up 0.4 percentage points to 17 percent last quarter from the previous year, International Data Corp (IDC) said yesterday. The world’s third-largest LCD panel maker shipped 34.3 million TV and PC panels last quarter, up 4.6 percent from the previous year ago, IDC said. It said AU Optronics Corp (友達光電) ranked fourth last quarter, but saw its market share drop 0.8 percentage points to 13.7 percent from the previous year. South Korea’s LG Display Co and Samsung Display Corp maintained their first and second spots with market shares of 21.9 percent and 17.3 percent respectively, while China’s BOE Technology Group Co (京東方) expanded its market share to 12.3 percent after shipments spiked almost 21 percent year-on-year.
LED firms see sales fall
Taiwanese LED companies reported weak sales momentum and more than a 10 percent monthly sales decline last month, with LED chipmaker Epistar Corp’s (晶元光電) sales down 12.1 percent to NT$2.3 billion and LED chip packager Everlight Electronics Co’s (億光電子) sales down 9.2 percent to NT$2.2 billion. Even so, the firms were generally optimistic about the demand for lighting LEDs in the third quarter and expect sales momentum to recover by the second half of next quarter, aided by falling retail prices for residential lighting and aggressive promotions by tier-one brands.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Nano-X Imaging Ltd, a start-up founded by Israeli investor Ran Poliakine, is joining forces with South Korean chipmaker SK Hynix Inc to build a machine that could disrupt a century-old X-ray industry. Valued at about US$2 billion after listing on the NASDAQ last month, Nano-X is seeking to transform a multibillion-dollar industry that has essentially relied on the same technology since Nobel Prize in Physics winner Wilhelm Roentgen discovered X-rays in the late 19th century. Nano-X’s device uses semiconductors instead of metal filaments to generate X-rays. The backing of SK Hynix, the world’s second-largest maker of memory chips, is a boost for
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into