Anta Sports mulling sale
Anta Sports Products Ltd (安踏體育用品) is considering a sale of its fitness equipment brand Precor Inc after being approached by potential buyers, people familiar with the matter said. The biggest sportswear maker in China is working with an adviser for a potential sale of the US business that could fetch about US$500 million, the people said. A number of companies and private equity funds have shown preliminary interest in acquiring Precor, which designs and makes indoor cycling bikes, treadmills and elliptical machines, they said.
Intel seeks buyers for unit
Intel Corp is seeking buyers for its connected home division, a unit that makes chips used in home Internet access gear, people familiar with the matter said. The chipmaker has hired a financial adviser and is seeking to sell the unit that has annual sales of about US$450 million, said the people, who asked not to be identified because the matter is private. Intel declined to comment. Intel chief executive officer Bob Swan has said that he is looking at the company’s operations and would explore options for areas where it is not competitive.
Showa Denko eyes Hitachi
Showa Denko K.K. said it is considering buying Hitachi Ltd’s stake in Hitachi Chemical Co. The Japanese producer of petrochemicals, resins, ceramics, metals, carbon and electronic materials, said it is not the source of a Nikkei newspaper report saying that Hitachi was going to award it with preferred negotiation rights for the sale of Hitachi Chemical.
Probe urged over China
A senator yesterday urged lawmakers to investigate China’s access to the country’s power grid, warning of a security threat and possible sabotage due to Beijing’s stake in the nation’s only transmission firm. Risa Hontiveros filed a resolution warning of Chinese-engineered power and Internet outages and interference in elections if safeguards remained absent, citing confirmation last week from a power executive that a “hostile third party” had the ability to cause blackouts. The Chinese embassy in Manila did not respond immediately to a request for comment.
Country enters recession
The country registered a recession in the first two quarters of this year and zero growth in the third, revised official data released on Monday showed. The downward revision confirmed the economy’s weak performance under President Andres Manuel Lopez Obrador, who is struggling to deliver on a promise to kick-start growth in his first year in office. The economy contracted by 0.1 percent in each of the first two quarters and stagnated in the third, according to the revised figures from national statistics institute INEGI.
Hyflux, Utico strike deal
Troubled Singapore water treatment firm Hyflux Ltd has entered a restructuring deal with Middle Eastern utility Utico FZC. Under the agreement, Hyflux would get investment totaling S$400 million (US$293 million) from Utico, an exchange filing said. A court hearing for the debt-laden firm is scheduled for tomorrow. Hyflux, Singapore’s highest-profile debt restructuring, had been looking for a white knight investor after a deal with Indonesian consortium SM Investments fell apart in April.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable