The board of Jih Sun Financial Holding Co (日盛金控), which has Japan’s Shinsei Bank and US-based Capital Target Ltd among its shareholders, approved a recapitalization proposal to strengthen its banking unit’s financial structure yesterday.
In a filing to the Taiwan Stock Exchange, Jih Sun Financial said the recapitalization of Jih Sun International Bank (日盛銀行) would be implemented in two stages.
Jih Sun Bank will first cut its capital by NT$12.54 billion (US$383 million) by buying back and canceling 1.25 billion common shares. Following the 82.58 percent reduction in its capital, the lender will have capitalization of NT$2.64 billion, the filing said.
Afterward, Jih Sun Bank plans to raise NT$9.4 billion by issuing 940 million new shares, which would boost its capital to NT$12.05 billion, the filing said.
Jih Sun Financial said it would subscribe to all of these new shares issued by its banking subsidiary, which has suffered bad credit and underprovided loan loss reserves.
The recapitalization plan came after Jih Sun Financial completed a capital injection of NT$9.4 billion from existing shareholders last month to improve its capital strength.
At the time, the nation’s second smallest financial holding company by assets said it would inject the fresh capital into its banking unit to increase its capital adequacy.
At the end of March, Jih Sun Bank had a net worth of NT$7.63 billion, the fifth-lowest among local lenders, and a non-performing loan ratio of 4.03 percent, the fourth highest, Financial Supervisory Commission statistics show.
In separate news, the board of Far Eastern International Bank (遠東國際商銀) has agreed to acquire the local credit card and accounts-receivable businesses of American International Group Inc (AIG) for between NT$2.3 billion and NT$3 billion.
The New York-based global insurance giant is divesting itself of overseas operations to strength finances.
Far Eastern Bank said in a statement on Wednesday night that the decision to buy AIG Credit Card Co (Taiwan) (友邦信用卡) would boost its share of Taiwan’s credit card business. It expects to close the deal at the end of this year, the statement said.
The lender is the banking arm of the nation’s biggest textiles maker, Far Eastern Textile Co (遠東紡織), which is owned by Douglas Hsu (徐旭東).
RUN IT BACK: A succesful first project working with hyperscalers to design chips encouraged MediaTek to start a second project, aiming to hit stride in 2028 MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it is engaging a second hyperscaler to help design artificial intelligence (AI) accelerators used in data centers following a similar project expected to generate revenue streams soon. The first AI accelerator project is to bring in US$1 billion revenue next year and several billion US dollars more in 2027, MediaTek chief executive officer Rick Tsai (蔡力行) told a virtual investor conference yesterday. The second AI accelerator project is expected to contribute to revenue beginning in 2028, Tsai said. MediaTek yesterday raised its revenue forecast for the global AI accelerator used
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has secured three construction permits for its plan to build a state-of-the-art A14 wafer fab in Taichung, and is likely to start construction soon, the Central Taiwan Science Park Bureau said yesterday. Speaking with CNA, Wang Chun-chieh (王俊傑), deputy director general of the science park bureau, said the world’s largest contract chipmaker has received three construction permits — one to build a fab to roll out sophisticated chips, another to build a central utility plant to provide water and electricity for the facility and the other to build three office buildings. With the three permits, TSMC
The DBS Foundation yesterday announced the launch of two flagship programs, “Silver Motion” and “Happier Caregiver, Healthier Seniors,” in partnership with CCILU Ltd, Hondao Senior Citizens’ Welfare Foundation and the Garden of Hope Foundation to help Taiwan face the challenges of a rapidly aging population. The foundation said it would invest S$4.91 million (US$3.8 million) over three years to foster inclusion and resilience in an aging society. “Aging may bring challenges, but it also brings opportunities. With many Asian markets rapidly becoming super-aged, the DBS Foundation is working with a regional ecosystem of like-minded partners across the private, public and people sectors
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
RSS