Tong Yang Industry Co (東陽實業), the nation’s biggest autoparts maker, announced yesterday it would acquire a 60.88 percent stake in Taiwan Kai Yih Industrial Co (開億工業) via a share swap.
Tong Yang already owns a 39.12 percent stake in Kai Yih, whose businesses include manufacturing and trading of automobile body parts, bicycle parts, metal parts and moldings.
The latest share acquisition will allow Tong Yang to merge its affiliated company completely, the Tainan-based company said in a stock exchange filing.
Tong Yang will be the surviving entity after the deal is closed on Sept. 1 next year, the filing said.
Both companies held respective board meetings yesterday to approve the deal, which would enable Tong Yang to issue 65.7 million new shares and to swap one of its shares for 1.55 shares of Kai Yih.
“The deal is expected to integrate group resources and lower operation costs. It will also help the company expand business scale, improve operation efficiency and increase global competitiveness,” the filing showed.
In the first 11 months of the year, Tong Yang posted a net profit of NT$1.68 billion (US$52 million), or NT$3.73 in earnings per share, which was an increase of 103.8 percent from a year earlier. Kai Yih, meanwhile, reported a net profit of NT$279 million, or NT$1.67 per share, during the same period, Tong Yang’s Web site said.
The merger deal was announced after the closure of the local stock market, where Tong Yang’s shares ended 0.4 percent higher at NT$57.20 and Kai Yih surged 5.7 percent to NT$33.50.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS