Merry inks Luxshare deal
Audio electronics maker Merry Electronics Co (美律) yesterday said it has signed a letter of intent with Luxshare Precision Industry Co (立訊) to sell a major stake in its Chinese subsidiary. Luxshare is to invest between 400 million yuan and 600 million yuan (US$59.73 million and US$89.59 million) to acquire between 40 percent and 60 percent of Merry’s subsidiary in China, the firm said. Merry’s Chinese subsidiary accounted for 26 percent of its total revenue of NT$12.23 billion (US$381.9 million) last year. The Taiwanese company said the planned transaction has nothing to do with Luxshare’s Hong Kong subsidiary’s planned investment of NT$3.78 billion in Merry, which the Investment Commission blocked on June 30. Merry said it is still communicating with the commission, seeking the government’s approval for Luxshare to invest in the company.
Hacked ATMs to be retired
State-run First Commercial Bank (第一銀行) yesterday announced that it would permanently retire the 438 Wincor Nixdorf ProCash 1500 ATMs that were involved in last week’s hacking incident that resulted in the theft of more than NT$80 million (US$2.5 million) in cash. Procurement orders for replacement ATMs are to be submitted within a month, the company said, adding that services have resumed at 54 ATMs made by the German company that were not the same model. In addition, the company is conducting a review of its management team and a list of executives to be penalized would be announced, First Financial Holding Co (第一金控) chairman Joseph Tsai (蔡慶年) said. Tsai also acknowledged that the investigation of the hacking was beyond the company’s capabilities and that it had alerted the authorities on the day of the theft.
City Cafe revamp unveiled
President Chain Store Corp (PCSC, 統一超商) yesterday unveiled its latest marketing plan to refresh the image of its coffee brand, City Cafe, in a bid to boost revenue. PCSC plans to launch a series of new drinks, coffee cup sleeves and advertisements for a limited time this summer and hopes the new marketing strategies would boost sales of coffee-related products by 15 percent. The nation’s coffee market is estimated to be worth more than NT$70 billion a year, the company said in a statement.
NT dollar falls on outflows
The New Taiwan dollar depreciated against its US counterpart yesterday, falling NT$0.034 to close at NT$32.024 as foreign investors moved funds out of the nation after receiving cash dividends from Taiwanese listed companies, dealers said. Buying among local importers also gave an additional boost to the US dollar, helping the greenback snap a three-session losing streak and return to the NT$32 mark at the close, they said. Turnover totaled US$770 million during the trading session. The greenback gained strength in the wake of fund outflows by foreign investors during the dividend season, they said. According to a market estimates, listed companies were expected to pay out about NT$420 billion in cash dividends to foreign investors during the ex-dividend season. By the end of this week, the cash dividend allocation to foreign institutional investors is expected to hit NT$250 billion, which has paved the way for the investors to remit funds out of the nation, the dealers said.
JPMorgan Chase & Co chief executive officer Jamie Dimon on Tuesday quipped that his company is likely to outlast the Chinese Communist Party (CCP), while reiterating the bank’s commitment to the country in wide-ranging comments that also touched on Taiwan, free speech and former US president Donald Trump. “We hope to be there [in China] for a long time,” Dimon told a panel discussion at the Boston College Chief Executives Club. Relaying a “joke” he made during a recent visit to Hong Kong, he said “The communist party is celebrating its 100th year. So is JPMorgan. And I’ll make you a
The Kaohsiung City Government yesterday said it would impose a property hoarding tax as it is seeking to contain speculation in the real-estate market, calling recent price increases “abnormal.” The announcement came in support of the Ministry of Finance’s call for local governments to levy a high tax rate on people with more than one property. Ministry officials on Tuesday discussed strategies to rein in speculation with the nation’s six special municipalities, as well as the Hsinchu city and county governments. About 84,000 out of 1.06 million housing units in Kaohsiung are not residential property, the city government said in a
BOOST EXPECTED: Higher market prices would offset effects of the industry’s transition to more climate-friendly production methods, a company official said China Steel Corp (CSC, 中鋼) expects steel demand to increase on the back of governments around the world subsidizing infrastructure construction amid a stabilizing COVID-19 pandemic, CSC chairman Wong Chao-tung (翁朝棟) told an investors’ meeting yesterday. “After getting through the hard times, I foresee at least one year, very possibly two years, of strong steel market,” Wong said. Calling a dip in steel prices a “short respite for the market,” Wong said that it would likely bounce back early next year on the back of mild winter temperatures around the world allowing construction activity. Despite COVID-19 spikes in some regions and increased
The US$410 DeliSofter pot looks much like the rice cookers ubiquitous in Japanese households and it does prepare rice in 24 minutes. However, this invention of two Panasonic Corp engineers is designed to do more and help people with swallowing difficulties. The two women led the creation of a spin-off company, Gifmo Co, to sell the specialized steam cooker, which they say can turn fried chicken soft enough to be sliced with a potato chip. The machine works by first cutting into food with a series of blades and then subjecting it to extremely high pressure at a temperature of 120°C,