Connect with us


Teco, share exchange of the Walsin plan




Pau Jar has been accumulating Tecos shares since last year and the exchange of shares would reduce his stake in the company from 26.46% to 24.34%.

  • By Chen Cheng-hui / reporter

Leading industrial engine maker Teco Electric and Machinery Co Ltd () and power cable maker Walsin Lihwa Corp () announced on Friday that they would form a strategic alliance through a share swap.

As part of the deal, the two companies plan to issue 171.1 million and 205.33 million new shares, respectively, and then exchange shares, with a share exchange ratio set at one share. Walsin for 0.83 Teco shares, Teco spokesman Kevin Yeh () and Walsin’s chief of staff Sophi Pan () said at a joint press conference at the Taiwan Stock Exchange in Taipei.

After the transaction, Teco would hold a 6.37% stake in Walsin and Walsin would have an 8% stake in Teco, the companies said.

Photo: Bill Chen, Taipei Times

The companies expect to complete the share exchange on Jan.6, they said.

To improve the competitiveness of both sides, we will cooperate … in the deployment of next-generation smart grids, smart manufacturing and new energy industry applications, Teco said in a regulatory filing.

The agreement is expected to combine the advantages of both sides to establish a long-term cooperative relationship on the basis of mutual benefit … to jointly open up new industrial situations, he added.

Founded in 1956 for the production of motors, Teco also develops and designs energy efficient infrastructure support solutions and electrical products.

Although sales in the automotive segment fell this year due to the COVID-19 pandemic, gains in the company’s financial investments, the reversal of tax provisions and better cost control allowed the company to ‘Record a net profit of NT $ 2.73 billion (US $ 94.73 million). in the first three quarters of this year, up 5.41% from NT $ 2.59 billion a year earlier.

Earnings per share for the nine-month period were NT $ 1.41, compared to NT $ 1.33 a year earlier.

Walsin Lihwa was established in 1966 and is engaged in the fields of wire and wiring, stainless steel, renewable energy, smart grids and commercial real estate.

The company reported net profit of NT $ 4.82 billion in the first three quarters, an increase of 118% from NT $ 2.21 billion a year earlier, bringing earnings per share to 1 , 46 NT dollars against 0.66 NT dollars over the period.

The strategic alliance will focus on four main areas, namely smart grids, integration of existing customers and industries, the new energy market in the United States and the development of the green energy industry. Walsin said in his statement.

By leveraging the strengths of both sides … we can deepen the relationship and jointly explore opportunities in various sectors, the company said.

While the two companies said they expected synergy, market watchers said the alliance could counter the growing influence of New Taipei City-based developer Pau Jar Groups () in Teco after its proposal for a 10% capital reduction was rejected by Teco shareholders on May 11.

Due to Tecos’ strong balance sheet and stable cash flow, Pau Jar has accumulated shares in the electromechanical company since last year through PJ Asset Management Co Ltd (), Jaryuan Investment Co Ltd () and Yuan Tong Investment Co (), thus becoming the largest shareholder.

To counter Pau Jar, Teco proposed in April that strategic investors be invited to participate in a private placement to dilute Pau Jars’ stake, but it abandoned the plan later in the month.

Nonetheless, the share swap between Teco and Walsin is expected to reduce Pau Jars’ stake in Teco from 26.46% to 24.34%, market watchers said.

Comments will be moderated. Keep comments relevant to the article. Comments containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. The final decision will be at the discretion of the Taipei Times.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

picture credit


to request, modification Contact us at Here or [email protected]