IBF Financial Holdings Co (國票金控) on Thursday said that its Japanese joint-venture partner has agreed to waive a non-competition clause, paving the way for the company to invest in a commercial bank in Taiwan.
The partner is Japan-based e-commerce company Rakuten Group Inc, which, through its wholly owned subsidiaries Rakuten Bank and Rakuten Card, set up a virtual bank, Rakuten International Commercial Bank Co (樂天國際商銀), in partnership with IBF.
The Tokyo-based Rakuten Bank and Rakuten Card hold a combined 51 percent stake of the Web-only bank, with paid-in capital of NT$10 billion, while IBF holds the remaining 49 percent.
Photo: Lee Ching-hui, Taipei Times
IBF did not disclose whether it has or will compensate the Japanese partner for canceling the non-competition agreement, only saying that with the waiver, it can proceed with negotiations with the target firm, it said in a filing to the Taiwan Stock Exchange (TWSE).
Speculation has circulated that EnTie Commercial Bank (安泰銀行) is the target bank, but IBF executive vice president Andrew Chiu (邱銘恩) told the Taipei Times by telephone that the financial holding company is still evaluating which commercial bank to invest in and has not reached a final decision.
IBF’s board of directors has been discussing the investment since February, and while most directors agreed that IBF should seek acquisition opportunities, two independent board members — Chen Wei-lung (陳惟龍) and Wu Ching-sung (吳青松) — expressed concern that it could weaken IBF’s financial strength and ownership stability, company filings with the TWSE showed.
The pair said the acquisition would be too expensive, the target bank’s loan quality was not satisfactory, and if IBF issued convertible preferred shares to fund the deal as planned, it would affect the stability of its shareholding structure, the filings showed.
Under current banking regulations, IBF is not barred from acquiring a conventional bank even though it already has a virtual bank, Financial Supervisory Commission Chairman Thomas Huang (黃天牧) told a meeting at the Legislative Yuan in March.
However, the commission will have to consider whether IBF is financially sound to simultaneously support two banking units, as “it takes considerable capital to operate two different types of banks,” Banking Bureau Director-General Sherri Chuang (莊琇媛) told the meeting.
IBF chairman Wea Chi-lin (魏啟林) told an investors’ conference in April that acquiring a physical channel would raise the company’s efficiency, and IBF would pursue acquisitions that are good for shareholders’ equity.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS