Fundraising hits new low
Equity fundraising by Taiwanese businesses has hit a new low since the 2008-2009 global financial crisis amid slowing economic growth and rock-bottom interest rates, the Financial Supervisory Commission said yesterday. In the first half, the amount of capital raised through new share issues fell to NT$157.55 billion (US$4.91 billion), a decrease of 41.35 percent from the same period last year. Following consecutive interest rate cuts, companies have begun selecting bank loans to take advantage of low financing costs, the commission said.
Secom opens retail outlets
Taiwan Secom Co (中興保全) yesterday said it would continue to diversify beyond its core security services business and maximize synergy between affiliates of its SIGMU Group. The company is aiming to encompass the dining, medical, home, transportation and entertainment needs of consumers. To do so, the company has opened two retail outlets in Taipei to showcase its new offerings, each with a monthly revenue of between NT$300,000 and NT$500,000. In addition, the company said that it would open at least one new store each month, setting a goal to open 200 such stores in the next three years.
Kindom inaugurates mall
Land developer and construction firm Kindom Construction Corp (冠德建設) yesterday inaugurated its Global Mall (環球購物中心), at Taipei’s Nangang Railway Station. The shopping mall targets commuters and travelers at the station, which services Taiwan Railways Administration trains, Taiwan High Speed Rail Corp (台灣高鐵) and Taipei’s MRT system. The newly built 8,595m2 shopping center will create hundreds of job opportunities and is expected to generate more than NT$700 million in revenue per year, Kindom chairman Timothy Ma (馬玉山) said yesterday.
TWSE touts governance
The Taiwan Stock Exchange (TWSE) on Monday said that after three years of efforts by the exchange to promote corporate governance, the quality of many listed companies’ shareholder meetings has improved significantly. According to a corporate governance blueprint issued by the exchange in 2013, listed companies are required to have their corporate governance practices evaluated by the TWSE and have consequently taken steps to improve their performance in this area. One of the exchange’s corporate governance initiatives was to get listed companies to hold shareholder meetings that give investors a platform to monitor the company’s operations and protect their interests. The campaign has been effective, as the quality of shareholder meetings has improved year after year and made a considerable leap compared with three years ago, seen through many different metrics, the TWSE said. A total of 614 listed companies, or more than 70 percent of those on the main bourse, had shareholders vote on every motion proposed at their shareholder meetings this year, up from 56 percent a year earlier, the TWSE said. About 93 percent of listed companies posted the results of their shareholder meetings on the TWSE’s Market Observation Post System on the same day that shareholder meetings were held, while more than half of all listed companies adopted e-voting to enable shareholders who could not attend the meeting to vote.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB