Fubon Financial Holding Co (富邦金控), which last week acquired 53.84 percent of Jih Sun Financial Holding Co (日盛金控), yesterday said it plans to buy the remaining 46.16 percent stake in the third quarter and complete the merger by the end of this year.
It would again offer NT$13 per Jih Sun share, the same as its previous public tender offer, to be fair to all Jih Sun shareholders, Fubon Financial president Jerry Harn (韓蔚廷) told an investors’ conference in Taipei.
Having acquired majority control of Jih Sun Financial, Fubon Financial on Tuesday started to recognize its peer’s profits, but operations integration would take more time, Harn said.
Photo: Lin Cheng-kun, Taipei Times
Fubon Financial would start by merging Jih Sun Financial with its operations by the end of this year, then integrate its banking, securities and futures units into Fubon’s arms by the end of next year, he said.
Jih Sun Financial would cease to exist at the end of this year, but Jih Sun International Bank (日盛銀行), Jih Sun Securities Co (日盛證券) and Jih Sun Futures Co (日盛期貨) would continue operating until they become part of Taipei Fubon Commercial Bank (台北富邦銀行), Fubon Securities Co (富邦證券) and Fubon Futures Co (富邦期貨) respectively next year, he said.
“The consolidation of the banking units and securities arms involves dealing with different information systems and employees from both sides. We need to be more cautious,” Harn said.
Although some of Jih Sun Bank’s and Taipei Fubon Bank’s branches overlap in some areas, they would not necessarily be closed, Harn said.
“We would take this opportunity to expand our presence in the countryside and southern Taiwan,” he said.
Even though some branches would be closed eventually, it does not mean that Jih Sun employees would be dismissed, Harn said, adding that Fubon Financial would protect workers’ rights.
“Fubon Financial has conducted many small and big mergers and acquisitions over the past 20 years, and we have never had major labor disputes. Many of our top managers were from the target companies we acquired,” Harn said.
The acquisition is expected to improve Fubon Financial’s efficiency and cost management, as well as boost its revenue, he said.
The deal would raise Fubon Securities’ market share from 5.57 percent at the end of last year to 9.14 percent after absorbing Jih Sun Securities, which would make it the second-largest securities firm after Yuanta Securities Co (元大證券), it said.
Fubon Futures’ market share would also rise from 2.6 percent to 5.23 percent, with its ranking moving from ninth to fifth, while Taipei Fubon Bank’s number of branches would expand to 174, ranking it first, followed by Cathay United Bank (國泰世華銀行) with 164, it said.
Harn also announced that Fubon Financial’s planned cash dividend payout ratio this year would be similar to last year’s 36.63 percent.
That would imply a cash dividend of NT$3.12 per share, based on the company’s record earnings per share of NT$8.54 last year.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
United Microelectronics Corp (UMC, 聯電) forecast that its wafer shipments this quarter would grow up to 7 percent sequentially and the factory utilization rate would rise to 75 percent, indicating that customers did not alter their ordering behavior due to the US President Donald Trump’s capricious US tariff policies. However, the uncertainty about US tariffs has weighed on the chipmaker’s business visibility for the second half of this year, UMC chief financial officer Liu Chi-tung (劉啟東) said at an online earnings conference yesterday. “Although the escalating trade tensions and global tariff policies have increased uncertainty in the semiconductor industry, we have not
RSS