Formosa International Hotels Corp (FIH, 晶華國際酒店集團) yesterday said that its board had approved plans to sell all its shares in Pizzavest Co Ltd (達美樂披薩) to Australia-listed fast-food operator Dominio’s Pizza Enterprises Ltd for US$61.2 million.
The deal, scheduled to be completed in 90 days, would give FIH the financial means to stay competitive and safeguard the interest of employees and shareholders as the hospitality industry at home and abroad is hit hard by the COVID-19 pandemic, the Taipei-based company said.
Pizzavest, the operator of Domino's Taiwan, operates 157 corporate and franchised stores, and is the second-largest pizza chain in Taiwan. It generated a net profit of NT$68 million (US$2.46 million) last year despite the COVID-19 pandemic, making it an attractive acquisition target for Domino’s Pizza Enterprises in Australia, FIH said.
Photo: Reuters
FIH, which runs hotels under the Regent Taipei (台北晶華), Silks Place (晶英), Wellspring by Silks (晶泉丰旅) and Just Sleep (捷絲旅) brands across Taiwan, said it intends to focus on hotel management and brand franchising.
It also runs independent restaurants the Spice Market (泰市場), Just Italian (義饗食堂) and Just Grill Steakhouse.
It took over the operation of Domino’s Taiwan in 2007.
Domino’s Pizza Enterprises said it sees long-term potential for business growth in Taiwan, its 10th market, with plans to expand to more than 400 stores. The deal with FIH is to be funded by a combination of cash and debt, it said.
The Australian firm said it is seeking to enter more markets abroad, aiming to have 1,900 stores in Asia between 2030 and 2031, from 1,500 now.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, booked its first-ever profit from its Arizona subsidiary in the first half of this year, four years after operations began, a company financial statement showed. Wholly owned by TSMC, the Arizona unit contributed NT$4.52 billion (US$150.1 million) in net profit, compared with a loss of NT$4.34 billion a year earlier, the statement showed. The company attributed the turnaround to strong market demand and high factory utilization. The Arizona unit counts Apple Inc, Nvidia Corp and Advanced Micro Devices Inc among its major customers. The firm’s first fab in Arizona began high-volume production
VOTE OF CONFIDENCE: The Japanese company is adding Intel to an investment portfolio that includes artificial intelligence linchpins Nvidia Corp and TSMC Softbank Group Corp agreed to buy US$2 billion of Intel Corp stock, a surprise deal to shore up a struggling US name while boosting its own chip ambitions. The Japanese company, which is adding Intel to an investment portfolio that includes artificial intelligence (AI) linchpins Nvidia Corp and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), is to pay US$23 a share — a small discount to Intel’s last close. Shares of the US chipmaker, which would issue new stock to Softbank, surged more than 5 percent in after-hours trading. Softbank’s stock fell as much as 5.4 percent on Tuesday in Tokyo, its
COLLABORATION: Softbank would supply manufacturing gear to the factory, and a joint venture would make AI data center equipment, Young Liu said Hon Hai Precision Industry Co (鴻海精密) would operate a US factory owned by Softbank Group Corp, setting up what is in the running to be the first manufacturing site in the Japanese company’s US$500 billion Stargate venture with OpenAI and Oracle Corp. Softbank is acquiring Hon Hai’s electric-vehicle plant in Ohio, but the Taiwanese company would continue to run the complex after turning it into an artificial intelligence (AI) server production plant, Hon Hai chairman Young Liu (劉揚偉) said yesterday. Softbank would supply manufacturing gear to the factory, and a joint venture between the two companies would make AI data
DOLLAR SIGNS: The central bank rejected claims that the NT dollar had appreciated 10 percentage points more than the yen or the won against the greenback The New Taiwan dollar yesterday fell for a sixth day to its weakest level in three months, driven by equity-related outflows and reactions to an economics official’s exchange rate remarks. The NT dollar slid NT$0.197, or 0.65 percent, to close at NT$30.505 per US dollar, central bank data showed. The local currency has depreciated 1.97 percent so far this month, ranking as the weakest performer among Asian currencies. Dealers attributed the retreat to foreign investors wiring capital gains and dividends abroad after taking profit in local shares. They also pointed to reports that Washington might consider taking equity stakes in chipmakers, including Taiwan Semiconductor