Taipei, June 21, 2012 (CENS)--Preparing for future investments and M&As, Taiwan's three private financial holding companies, namely, Cathay Financial Holding Co., Fubon Financial Holding Co., and SinoPac Financial Holding Co., will reportedly raise combined capitalization by NT$110 billion (US$3.67 billion).
Cathay and Fubon plan to raise NT$40 billion (US$1.33 billion) each and SinoPac NT$30 billion (US$1 billion), via floating shares through GDR or ECB or by cash capital increase.
C. K. Lee, president of Cathay, disclosed that the company's board has just approved the investment of US$22.5 million to acquire 70% of SBS, a Cambodian bank, as well as the proposal to set up a representative office in Indonesia. In addition, Cathay Life Insurance Co., an affiliate of Cathay Financial, has applied to set up a Cambodian subsidiary to expand into that market.
Daniel Tsai, chairman of Fubon Financial, said that Fubon has in recent years not only expanded operations to China, but also to Southeast Asia, particularly Vietnam where the company has banking and insurance affiliates.
Last year Fubon celebrated its 10th anniversary and scored combined after-tax profits of NT$30.543 billion (US$1.02 billion), planning to keep expanding operations in
China and Southeast Asia.
SinoPac also plans to expand operations to China and has applied to upgrade its representative office in Nanjing, Jiangsu Province to a subsidiary.
(by Judy Li)