Taipei, June 16 (CNA) Shareholders of Fubon Financial Holding Co., one of Taiwan's leading financial holding companies, have approved a plan to allow the firm to raise NT$40 billion (US$1.34 billion) as long-term working capital.
In an annual general meeting held Friday, shareholders authorized the company's board of directors to implement the fundraising plan to meet demand for future expansion.
Fubon Financial Chairman Daniel Tsai said the company will either issue new shares in the local stock market or sell global depositary receipts, or even use a combination of both methods to raise up to NT$40 billion.
Tsai said the company will seek the appropriate time to raise the funds by considering the market climate and the funding requirementsof the company.
The shareholders have also approved a proposal to issue a dividend of NT$1.5 per share, comprising a NT$1 cash dividend and a NT$0.5 stock dividend for 2011.
Last year, Fubon Financial, which operates banking, insurance and securities businesses in Taiwan, posted NT$30.69 billion in net profit, or NT$3.39 in earnings per share (EPS), up from NT$20.72 billion or NT$2.33 EPS a year earlier.
In the first five months of this year, Fubon Financial retainedits title as the most listed profitable financial holding company inTaiwan in terms of EPS, recording NT$1.12 in EPS, ahead of the No.2 firm, Mega Financial Holding Co., which registered NT$0.98.
In the China market, Tsai said that Taipei Fubon Commercial Bank, a banking arm of Fubon Financial, is planning to seek approval from the Chinese authorities for an upgrade of a representative office in Suzhou, Jiangsu Province into a branch at the end of this year after one year of having a presence in China, in a bid to provide betterservices to Taiwanese investors operating there.
Meanwhile, Fubon Life Insurance, one of the financial holdingcompany's insurance divisions, has sought approval from the ChinaInsurance Regulatory Commission to team up with China-based NanjingZijin Investment Co. to set up a 50-50 joint venture in Nanjing,Tsai said.
Fubon Financial has displayed aggressive ambition in expanding its China operations since Fubon Bank (Hong Kong), one of its subsidiaries,became a shareholder of Xiamen Bank City Commercial in 2008.
In 2010, Fubon Insurance Co., another unit of the financial holding company, set up Fubon Property & Casualty Insurance Co. in Xiamen, Fujian Province, while in 2011, Fubon Financial Holding established joint Founder Fubon Fund Management Co. in Beijing.
(By Tien Yu-pin and Frances Huang)