Taiwan FamilyMart Co (全家便利商店) yesterday said that Wan Pao Development Co (萬寶開發), Cathay Financial Holding Co’s (國泰金控) largest shareholder, had bought a stake of almost 20 percent in the nation’s second-largest convenience store chain.
Cathay Financial said it had no knowledge of Wan Pao’s investment activities and could not speak on its behalf.
Wan Pao, which is owned by the family of Cathay Financial chairman Tsai Hong-tu (蔡宏圖), holds a 15.86 percent stake in Cathay Financial. Another family-owned firm, Lin Yuan Investment Co (霖園投資), holds a 14.02 percent stake in Cathay Financial, bringing the family’s total holding in the financial firm to nearly 30 percent.
Photo: Liao Chen-hui, Taipei Times
On Dec. 5, food and beverage maker Taisun Enterprise Co (泰山企業) announced that it had sold 43.3 million shares, or a 19.4 percent stake, in Taiwan FamilyMart to a buyer for NT$187 per share.
Taisun pocketed NT$8.097 billion (US$264.76 million) from the deal, which was executed in a block trade — a large privately negotiated securities transaction.
The purchase makes Wan Pao the second-largest shareholder of Taiwan FamilyMart, after Japan-based FamilyMart Co, which owns about a 45 percent stake in the Taiwanese convenience store chain, companies’ data showed.
Local media reports said that the Tsai family did not use Cathay Life Insurance Co (國泰人壽), the flagship firm of Cathay Financial, but Wan Pao as a vehicle to acquire the Taiwan FamilyMart stake, because life insurers are required by law to disclose investments to the Financial Supervisory Commission when they buy a stake of more than 10 percent.
The Tsai family’s move to take a majority stake in Taiwan FamilyMart is an attempt to take on rival Fubon Financial Holding Co (富邦金控) in the local retail market, the reports said.
Fubon Financial is the owner of e-commerce operator Momo.com Inc (富邦媒體).
The Tsai family was impressed with FamilyMart’s lead in the local retail and logistics business, and upbeat about its outlook, the reports said.
The family also has faith in FamilyMart’s mobile payment system +Pay (全盈) launched by All Win Fintech Co (全盈支付金融科技) in April, they added.
All Win Fintech is a joint venture between Taiwan FamilyMart and E.Sun Financial Holding Co (玉山金控).
The electronic payment company had 9 million users at the end of October, data from the Financial Supervisory Commission showed.
Market sources said that Cathay Financial also wanted to take advantage of FamilyMart’s popularity to enhance its flagship banking entity United Cathay Bank’s (國泰世華銀行) credit card and ATM operations.
Taiwan FamilyMart posted earnings per share (EPS) of NT$2.29 in the third quarter, up from NT$1.27 a year earlier.
EPS in the first nine months of the year was NT$4.63, compared with NT$4.27 in the same period last year.
Additional reporting by Kao Shih-ching
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