Icahn sells Herbalife stock
Activist investor Carl Icahn has sold more than half his stake in Herbalife Nutrition Ltd for US$600 million and is planning to give up the five seats on the company’s board held by his representatives, the Wall Street Journal reported. Icahn, who had a 15.5 percent stake in Herbalife as of Sept. 30, sold about 10 percent back to the company in the past few days, the newspaper reported on Sunday, citing people familiar with the matter. That has left him with an about 6 percent stake, worth US$400 million, in the multi-level marketing company, whose products include dietary supplements, according to the report. Icahn began buying Herbalife shares in 2013 while extolling the company and had since been its largest shareholder.
Manila eyes more IPOs
The Philippine Stock Exchange is aiming for more companies to go public this year even as the economic environment “remains fragile,” president and CEO Ramon Monzon said. The stock exchange has a target for at least three companies and four real-estate investment trusts (REIT) to hold initial public offerings (IPOs) this year, Monzon said in a statement. More REITs are expected to list once the Securities and Exchange Commission approves proposed changes to the main and small enterprises boards’ IPO rules, he said. The Philippines is forecast to start growing only in the second quarter of this year, putting it among the slowest to recover from the COVID-19 pandemic that has ravaged the global economy.
Top Glove hikes dividend
Malaysia’s Top Glove Corp Bhd, the world’s largest medical gloves maker, yesterday hiked its proposed dividend as its shares came under pressure from speculation that the rollout of COVID-19 vaccines could hit demand for its products. The company, whose shares rocketed last year as the COVID-19 pandemic took hold, said it would pay out 70 percent of earnings for the rest of its financial year, covering its second to fourth quarters, up from the 50 percent planned previously. This was “in consideration of the good profit performance and strong cash flow, and to reward its shareholders,” it said in a statement. However, Top Glove shares fell as much as 14.5 percent to their lowest since the end of June last year, with smaller rivals Hartalega Holdings Bhd and Kossan Rubber Industries Bhd dropping as much as 14.2 percent and 13.3 percent respectively.
Dagong ordered to pay up
A Chinese court ruled that a local ratings firm should help compensate some creditors for a construction firm’s 1.4 billion yuan (US$216.7 million) bond defaults three years ago, a first in the country as Beijing raises pressure on agencies to improve their due diligence. Dagong Global Credit Rating Co (大公國際信評) is responsible for repaying up to 10 percent of at least 494 million yuan of combined debt claims to more than 400 individual bondholders of Wuyang Construction Group Co (五洋建設集團), according to a ruling by Hangzhou Intermediate People’s Court dated on Thursday and seen by Bloomberg News. Wuyang Construction’s legal representative and actual controller Chen Zhizhang (陳志樟), underwriter Tebon Securities Co (德邦證券), as well as an accounting company and a legal firm are also collectively responsible, the court said, citing their failures to conduct due diligence properly.
Tesla Inc temporarily halted some production at its auto assembly plant in California because of problems with its supply chain, but work has begun to resume, CEO Elon Musk told employees in an e-mail on Thursday. “We are experiencing some parts supply issues, so took the opportunity to bring Fremont production down for a few days to do equipment upgrades and maintenance,” Musk said in an all-staff message seen by Bloomberg. The factory was “back up and running as of yesterday,” and would rapidly ramp up to full production of Model 3 and Model Y cars “over the next several days,”
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to post a 25 percent year-on-year increase in sales in the first quarter of this year to US$12.91 billion, up from US$10.31 billion a year earlier, as its production is at full capacity, market advisory firm TrendForce Corp said in a note last week. The increase would help TSMC cement its leadership in the industry by taking a 56 percent market share in the global pure wafer foundry business, TrendForce said. Its forecast was in line with TSMC’s estimate in January, which pointed to a range of US$12.7 billion to US$13 billion for the
MULTI-USE: The arrangement of seats in future vehicles would be different, allowing passengers to do everything they do at home, the CEO of the firm’s EV platform said Electric vehicles (EVs) developed on a Hon Hai Precision Industry Co (鴻海精密) platform would be built like “a smartphone on a different platform,” Jack Cheng (鄭顯聰), chief executive officer of the Hon Hai-initiated MIH Open Platform Alliance, said on Saturday. It would be the ultimate goal to make vehicles built on the platform an extension of the driver’s home, he said during an online presentation. The alliance aims to provide resources to automakers and boost Taiwan’s EV development, with a vision to make an EV its owner’s “second home,” Cheng said. “Whatever they can do in their home, they will be able
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was on Thursday set to sell local currency bonds, as it prepared for a spending blitz amid a global chip shortage. The world’s largest contract chipmaker planned to price about NT$16 billion (US$565.25 million) of notes in three parts in an auction, though the actual issuance size might change. The manufacturer would have to contend with a recent rise in rates globally that has sent many corporate bond yields up from record lows in the past few weeks. The debt offering comes at a promising time for the semiconductor industry as the world scrambles its way