Taishin Financial Holding Co (台新金控) yesterday said it would seek the support of the Ministry of Finance to push the merger of its banking subsidiary, Taishin International Bank (台新銀行), and Chang Hwa Commercial Bank (彰化銀行), but the ministry appeared cool to the idea, saying obstacles remained to the controversial deal.
Taishin Financial president Joseph Jao (饒世湛) and chief financial officer Welch Lin (林維俊) announced the firm’s latest move at the Taiwan Stock Exchange Corp after the company’s board gave its go-ahead yesterday afternoon.
Taishin Financial is seeking an end to the seven-year limbo since it bought a 22.5 percent stake in Chang Hwa Bank in 2005 for NT$36.57 billion (US$1.23 billion), equivalent to NT$26.12 per share then, with a view to owning the lender.
However, the merger has stalled because of controversy related to the second phase of financial reform initiated by then-president Chen Shui-bian (陳水扁).
UNEQUAL MERGER
Objections to the smaller private bank, Taishin, taking over the big state-owned bank Chang Hwa has stirred speculation that corruption might have been involved in the deal. The case is still under investigation.
Currently, Taishin Financial appoints Chang Hwa Bank’s chairman and the ministry picks its president, which limits its cross-selling efficiency and earnings potential, Jao said.
“The board passed a resolution whereby both Taishin Bank and Chang Hwa Bank will activate the integration process,” Jao said.
Toward that end, Taishin Financial will first seek approval from the Ministry of Finance, the second-largest shareholder in Chang Hwa Bank, Jao said.
Taishin Financial brought up the idea of the merger with the ministry before the Lunar New Year and will put in greater efforts to remove any obstacles, Jao said.
It is premature to speculate on the name of the would-be bank or the financial holding company, Jao said.
Whatever the outcome of the merger, the surviving bank would remain a subsidiary of Taishin Financial, Lin said.
Reports of the merger pushed up the share prices of both companies, with Taishin Financial hitting the daily 7 percent limit in mid-session and closing up 3.67 percent at NT$12.70, outpacing the TAIEX’s 0.86 percent advance, Taiwan Stock Exchange data showed.
However, the ministry yesterday voiced its objection to the proposed merger.
“The merger will be detrimental to the public welfare,” Vice Minister of Finance William Tseng (曾銘宗) told a media briefing.
Even if Taishin Financial lets Chang Hwa be the surviving bank, Tseng said the “non-friendly takeover” would expand Taishin Financial’s stake in Chang Hwa and further dilute the government’s shareholding.
Tseng added that the deal remained controversial, and that the proposal introduced by Taishin Financial was not feasible in the ministry’s opinion.
NO CONSENSUS
Tseng also denied that the ministry reached a consensus for the merger with Taishin Financial during a meeting with Taishin Financial chairman Thomas Wu (吳東亮) before the Lunar New Year.
“The ministry voiced its disagreement [with the idea] during the meeting,” Tseng said.
INVESTMENT: Jun Seki, chief strategy officer for Hon Hai’s EV arm, and his team are currently in talks in France with Renault, Nissan’s 36 percent shareholder Hon Hai Precision Industry Co (鴻海精密), the iPhone maker known as Foxconn Technology Group (富士康科技集團) internationally, is in talks with Nissan Motor Co’s biggest shareholder Renault SA about its willingness to sell its shares in the Japanese automaker, the Central News Agency (CNA) said, citing people it did not identify. Nissan and fellow Japanese automaker, Honda Motor Co, are exploring a merger that would create a rival to Toyota Motor Corp in Japan and better position the combined company to face competitive challenges around the world, people familiar with the matter said on Wednesday. However, one potential spanner in the works is
SEMICONDUCTORS: Samsung and Texas Instruments would receive US$4.75 billion and US$1.6 billion respectively to build one chip factory in Utah and two in Texas Samsung Electronics Co and Texas Instruments Inc completed final agreements to get billions of US dollars of government support for new semiconductor plants in the US, cementing a major piece of US President Joe Biden administration’s CHIPS and Science Act initiative. Under binding agreements unveiled Friday, Samsung would get as much as US$4.75 billion in funding, while Texas Instruments stands to receive US$1.6 billion — money that would help them build facilities in Texas and Utah. The final deals mean the chipmakers can begin collecting the funding when their projects hit certain benchmarks. Though the terms of Texas Instruments’ final agreement is
Call it an antidote to fast fashion: Japanese jeans hand-dyed with natural indigo and weaved on a clackety vintage loom, then sold at a premium to global denim connoisseurs. Unlike their mass-produced cousins, the tough garments crafted at the small Momotaro Jeans factory in southwest Japan are designed to be worn for decades, and come with a lifetime repair warranty. On site, Yoshiharu Okamoto gently dips cotton strings into a tub of deep blue liquid, which stains his hands and nails as he repeats the process. The cotton is imported from Zimbabwe, but the natural indigo they use is harvested in Japan —
Japan ramped up its warnings against currency speculation on Friday after the yen slid to a five-month low following a hint from the central bank chief that he might wait longer than expected before raising interest rates. “The government’s deeply concerned about recent currency moves, including those driven by speculators,” Japanese Minister of Finance Katsunobu Kato said. “We will take appropriate action if there are excessive moves in the currency market.” The yen regained some ground against the dollar after Kato’s remarks, strengthening to as much as ￥156.89 after earlier weakening to ￥157.93. The Japanese currency strengthened a little further after currency
RSS