China Development Financial Holding Corp (中華開發金控) plans to acquire more of China Life Insurance Co (中國人壽) via a public tender of NT$23.6 per share, which would boost its stake in the life insurer to 55.95 percent, it said yesterday.
The company would conduct the public tender for a further 21.13 percent stake upon approval from the Financial Supervisory Commission (FSC), China Development Financial spokesman Richard Chang (張立荃) told a news conference in Taipei.
The maximum number of shares to be acquired in the offer would be 1 billion, or 21.13 percent of China Life’s issued shares, with the minimum set at 236.57 million shares, or 5 percent, Chang said.
The per-share offer price would represent a premium of 17.2 percent compared with China Life’s average closing price of NT$20.14 over the past 20 days, he said, adding that the offer was based on an assessment by PricewaterhouseCoopers Taiwan.
Asked if the retail shareholders of China Life would be willing to sell their shares given that in 2017 China Development Financial acquired a 25 percent stake in China Life at NT$35 per share, he said that the premium was 17 percent last time.
The announcement was unexpected, as the FSC has ordered China Development Financial to fully acquire the insurer before the tenures of China Life’s board members expire on June 13, 2022.
“We think it is a good time now,” Chang said.
With another 21.13 percent stake after this transaction, China Development Financial could easily take control of the insurer, he said.
China Development Financial would use NT$10 billion (US$347.09 million) raised from its corporate bonds, NT$3 billion of capital from its two units, CDIB Capital Group (中華開發資本) and KGI Securities Ltd (凱基證券), and other funds it has to make the acquisition, Chang said.
The company’s leverage ratio would remain stable, Chang said.
When the company would purchase another shares in China Life has not been decided, but it is still CDFHC’s goal to fully acquire China Life, he said.
RECORD BUDGET: TSMC does plan to raise its proposed capital expenditure a lot, and could benefit if Intel outsources more of its production to foundries, analysts said Intel Corp’s earnings conference call on Thursday is expected to clarify the US semiconductor giant’s outsourcing production plans, which would be crucial regarding Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) performance, analysts said. “TSMC stands to benefit if Intel outsources more of its fabrication to foundries,” SinoPac Securities Investment Service Corp (永豐投顧) analysts said in a note on Friday. Yuanta Securities Investment Consulting Co (元大投顧) was more cautious, saying that Intel’s contribution initially would be limited, but its outsourcing plans would still highlight TSMC’s leadership in technology, it added. “Intel will continue to manufacture server or high-end central processing units [CPUs], which have higher
MediaTek Inc (聯發科) yesterday announced it would give incentive bonuses totaling NT$1.7 billion (US$59.7 million) to its employees and those at the firm’s major subsidiaries, after the smartphone chip supplier’s revenue hit US$10 billion last year. This is the biggest incentive bonus the Hsinchu-based handset chip designer has ever distributed in its 23-year history. About 17,000 full-time employees of MediaTek and five of its subsidiaries, including Richtek Technology Corp (立錡科技) and Airoha Technology Corp (絡達科技), would receive a “red envelope” of NT$100,000 each, the company said. “Surpassing US$10 billion is just the beginning. We will continue to [grow] on this basis,” MediaTek
TO SPUR REVENUE: The contract chipmaker expects its profit to grow 15 percent this year, outpacing the foundry industry’s projected advance of about 10 percent Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday raised its projected capital spending for this year by 62 percent, a new high, in an attempt to satisfy customer demand for advanced technologies in the production of central processing units, high-performance-computing (HPC) devices and 5G applications. After investing US$17.24 billion last year, TSMC this year plans to spend US$25 billion to US$28 billion on manufacturing equipment and new facilities, including a fab in the US. About 80 percent of the budget would be allocated for developing advanced technologies including 3, 5 and 7-nanometer technologies, the company said. The larger-than-expected capital spending prompted speculation
Norway’s oil and gas reserves have made it one of the world’s wealthiest countries, but its dreams for deep-sea discovery now center on something different. This time, Oslo is looking for a leading role in mining copper, zinc and other metals found on the seabed and in hot demand in green technologies. The country could license companies for deep-sea mining as early as 2023, the Norwegian Ministry of Petroleum and Energy said, potentially placing it among the first countries to harvest seabed metals for electric vehicle batteries, wind turbines and solar farms. However, that could also place it on the front line of