08.30.2001
UWCCB acquires Sungshan Farmer's Association

• Development: UWCCB will purchase and assume Sungshan Farmer’s Association. The association will be first for UWCCB with 2 or 3 more coops likely to be acquired under MoF guidance. Shunshan’s outstanding loans amount to NT$2.2bn and it holds deposits of NT$3.7bn. Shunshan is estimated to have negative equity value of NT$2bn.

• Analysis: RTC has yet to calculate actual loan losses. We expect it to bear most of the possible loan loss since association already holds negative equity.

• Primasia View: UWCCB can benefit from additional branches assuming loan portfolios can be cleaned up. Otherwise no material impact on UWCCB.