02.23.2001
Taishin consolidating financial structure

• After obtaining permission from the Ministry of Finance, Taishin International Bank (2844 'Tai Xin Yin') will make a 44% ownership stake in Shinkong Securities Investment & Trust Co. (unlisted) at an upper limit of NT$52.0 per share.

• Taishin expects the consolidation to lead to higher efficiency in resource allocation and operations. It is considering the possibility of allowing a trust company to handle its short- term investments.

• Taishin will also gradually increase holdings in Taiwan Securities Co. (6010 'Tai Zheng Zheng') to 20% from the present 12%. With more than 100 thousand securities customers, the bank will benefit from cooperating with a securities company in terms of boosting demand deposits and settlement income.

• Taishin has denied rumours it is to merge with Asia Pacific Bank (2843 'Ya Tai Yin'). We believe it may be in the process of establishing a financial holding company by expanding into various kinds of businesses.

WilliamFong@Primasia.com +886-[0]2-2547-8864