Itochu reduces stake in Taipei 101 by half, gov't-invested banks take over

Taipei, March 28 (CNA) Japan-based Itochu Corp. has halved its stake in Taiwan's iconic Taipei 101, with six Taiwan government-invested banks taking over the shares sold by the Japanese conglomerate.

Data from the Taiwan Stock Exchange's market observation system showed that Itochu, the largest single shareholder of Taipei Financial Center Corp. (TFCC), which owns and operates Taipei 101 in Taipei's bustling Xinyi District, has reduced its stake in TFCC from 32.14 percent to 17.27 percent.

According to the data, six banks invested by the Ministry of Finance -- Mega International Commercial Bank, First Commercial Bank, Taiwan Cooperative Bank, Hua Nan Commercial Bank, Chang Hwa Commercial Bank, and Taiwan Business Bank -- have spent more than NT$9.45 billion (US$294 million), or NT$38.7 per share, to acquire the TFCC stake sold by Itochu.

In addition to the six banks, other government-affiliated enterprises with a stake in Taipei 101 include Chunghwa Telecom Co. and the Taiwan Stock Exchange. Private shareholders also include CTBC Bank, which had been rumored to be acquiring the stake sold by Itochu.

Following the transactions, government-invested or government-linked firms have increased their stake in Taipei 101 to around 70 percent. Market analysts expect the acquisition to strengthen the government's influence over the landmark business's operations.

Last year, Taipei 101's shopping center operations posted more than NT$23 billion in revenue, the highest among malls in northern Taiwan, while its observatory on the 101st floor attracted around 1.5 million visitors.

Net profit for 2024 hit a new high of NT$2.57 billion with earnings per share at NT$1.75.