06.20.2001
Far Eastern wants premium for share sale

• Development: Chairman of Far Eastern International Bank (2845 ‘Yuan Dong Yin’) would be satisfied to sell stake to foreign bank at 2.5x to NAV, provided he retains controlling stake.

• Analysis: Far Eastern is currently trading 40% discount to book value due to small scale of operations and a high overdue loan ratio of 6%.

• Primasia View: Far Eastern has been talking with several foreign banks for sometime, but sale of shares at prescribed price not likely due to asset quality issue.

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