Sampo Corp (
"We're planning to list shares of our Chinese units on overseas stock markets in tandem with the stable growth of those factories," Sampo spokesman Gary Chen (
This will include three factories in China -- a refrigerator plant in Tianjin and two plants producing freezer components in Suzhou and Dongguan, Chen added.
These three plants contributed combined pre-tax earnings of 63 million yuan (NT$252 million) to its parent company on total sales of 1 billion yuan last year, according to Chen.
To smooth the share-offering process, Chen said, "Sampo will not rule out the possibility of forming a joint venture with a Chinese home appliances brand."
Selling yuan shares in China has become a new way for Taiwanese electronics manufacturers to expand their business while raising funds directly from the Chinese stock market.
Companies such as Hon Hai Precision Industry Co (鴻海精密) and local handset maker Dbtel Inc (大霸電子) said they are making a cautious assessment of this approach after the Zhejiang King Refrigeration Industry Co's (浙江國祥製冷) successful share sale in December last year. The Taiwanese-controlled air conditioner maker became the first overseas company to sell local-currency stock in China.
But compared to Sampo's resolve, Hon Hai and Dbtel have said that a similar share-listing arrangement does not form part of their short-term fundraising plans, and that they are only considering it as one of several possible scenarios.
While a Chinese-language newspaper reported that Sampo was scheduled to execute the share sales in China, or in Hong Kong, by next year at the latest, citing Sampo chairman Felix Chen (
Sampo's shares dropped NT$0.2, or 1.27 percent, to NT$15.6 on the TAIEX yesterday, but analysts said the proposed stock-listing plan will have a positive effect in the long run.
profitability
"The share-sale plans indicate that its Chinese units have returned to profitability," said Chen Yen-liang (
Another analyst said the share offerings, if realized, will give Sampo an advantage to effectively finance its Chinese units when the ceiling of China-bound investment remains in place.
"It will be convenient for Sampo to create closer ties with its Chinese partners outside Taiwan," said Helen Chen (
partnership
Sampo formed a strategic alliance with Haier Group Co (
Sampo, which produces plasma display panel (PDP) televisions for Thomson SA of France and Gateway of the US, is likely to supply TCL with PDP sets after the French company joined a television venture with TCL.
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