Taishin Financial Holding Co (台新金控) yesterday said it has confidence in the Supreme Court’s ruling on a management rights dispute regarding state-run Chang Hwa Bank (CHB, 彰化銀行).
“We do not know exactly when the verdict will be made, but we expect it this year, as it usually takes a year for the Supreme Court to pronounce a judgement and it has been more than one year since the case reached the court,” Taishin Financial president Welch Lin (林維俊) told an investors’ conference in Taipei.
“I personally believe that the court will do justice by us, as we have a written agreement that guarantees us management rights over CHB. So, I think a scenario in which we lose this case is highly unlikely,” Lin added.
The conglomerate has been contesting the Ministry of Finance’s right to manage CHB since 2014, when it lost a majority on the CHB board to the ministry, as the ministry had in 2005 agreed that Taishin should keep the rights.
The ministry has said that the agreement was null and void after 2005, but Lin rejected the ministry’s claim, showing a copy of the agreement to conference attendees yesterday.
If the firm wins at the Supreme Court, it is willing to have a discussion with the ministry about CHB managing rights, Lin said.
If the ministry would let Taishin Financial regain control of CHB, the conglomerate would raise funds to merge with CHB, Lin said.
If the ministry aims to keep Taishin Financial from controlling CHB, then the company would exit the picture if it could recoup the NT$36.57 billion (US$1.18 billion) that it spent buying a 22.5 percent stake in CHB, Lin said.
Having the money returned would help Taishin Financial improve its financial picture, he added.
“We will cooperate with the ministry either way, but we cannot remain stuck any longer,” he added.
In response, the ministry yesterday said it would wait for the court’s ruling before making any decisions.
Last year, Taishin Financial reported net income of NT$12.93 billion, down 1 percent year-on-year, as increases in interest income, fee income and investment returns were offset by losses in loans to a Chinese company.
However, the company said it remains upbeat regarding profit growth for this year, as its lending and credit card businesses are showing steady growth.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
Uber Technologies Inc, Lyft Inc and Airbnb Inc have slashed thousands of jobs. Salesforce.com Inc and Visa Inc are letting employees work remotely for months; Twitter Inc and Square Inc are allowing them to do so for good. For the companies’ hometown of San Francisco, the moves are early signs of a dire blow. In a city with a long history of booms, busts and natural calamities, the COVID-19 pandemic has suddenly upended nearly a decade of prosperity. While municipalities across the US are grappling with economic fallout from the virus, San Francisco stands to take a deeper hit given its high
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the