E.Sun Financial Holding Co (玉山金控) yesterday announced that it was forming a partnership with Singapore-based Temasek Holdings Ltd, selling US$400 million of convertible bonds to Asia Financial Holdings Pte Ltd, Temasek's wholly owned subsidiary.
Asia Financial Holdings -- which will make the investment through its 100 percent-controlled subsidiary Adahlis Holdings BV -- will become E.Sun Financial Holding's largest institutional shareholder, with a 15 percent stake, after the conversion of bonds is completed in 2008, E.Sun Financial's spokesman Tu Wu-lin (
Asia Financial Holdings will gain one seat on E.Sun Financial's 13-member board in the shareholders meeting in June after converting the bonds into a 5 percent stake at NT$21.21 per share in one month, Tu said.
The Singaporean firm could obtain a total of two to three seats following the conversion of the rest of the bonds at NT$24.36 per share two years from now, he added.
E.Sun Financial will use the proceeds to strengthen its capital adequacy ratio and for potential merger and acquisition (M&A) activities, Tu said.
"We will not give up any M&A opportunities in the future to sustain our development," he said.
He declined to say whether the company was engaged in any merger talks at the moment.
"We are positive about the partnership amid the recent lackluster [performance of the] finance sector," said Vincent Chang (
Separately, Taishin Financial Holding Co (台新金控) yesterday signed contracts with Newbridge Capital of the US and Nomura Group of Japan, which had agreed to invest a combined NT$31 billion in the local finance group through a private placement last month.
The deal will enable Taishin Financial to strengthen its capital structure and adequacy while building up its leading position in the nation's finance sector, the company said in a statement released yesterday.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
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STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would
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