Kaddy Chung, Taipei; Adam Hwang, DIGITIMES [Tuesday 29 January 2008]
Taiwan Mobile (TWM), the second or third largest operator of mobile communication services in Taiwan, on January 28 announced its subsidiary Taiwan Fixed Network (TFN) sold 300 million shares of TWM’s common stock, equivalent to a stake ratio of about 3%, to Fubon Financial Holding, and another 300 million shares to QFIIs (qualified foreign institutional investors) at NT$45.2 (US$1.4) per share.
The brothers Daniel Tsai and Richard Tsai, respectively the chairman and a director of Fubon Financial, were the actual buyers on behalf of the holding company, according to sources at the Taiwan Stock Exchange (TSE). Fubon Financial is an enterprise mainly owned and operated by the Tsai family.
Richard Tsai is currently the chairman of TWM while Daniel Tsai is his predecessor, the sources indicated. The Tsai brothers’ acquisition has increased Fubon Financial’s stake in TWM to nearly 25%, which should help to reinforce the holding company’s rights to operate TWM, the sources analyzed.
After the deal, the stake in TWM held by TFN and its subsidiary together decreased to 21.4%, equivalent to TWM’s treasury stock, the sources noted.
Although TWM declined to indicate how many QFIIs purchased the 300 million shares or who they are, stock experts guessed Goldman Sachs should be either the sole or one of only a few investors, according to reports from the Chinese-language Economic Daily News (EDN) and Commercial Times.
