Tue, Jul 19, 2016 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with CNA

ELECTRONICS

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.

BANKING

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.

RETAILING

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.

FOREIGN EXCHANGE

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.

This story has been viewed 1964 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top