09.05.2001
Fubon Group announces restructuring schedule

• Development: The parent group of Fubon Commercial Bank, Fubon Group, announced a timetable for the restructuring of the bank into a Financial Holding Company (FHC) yesterday. It will announce the share-swap ratio between the five subsidiaries on 26 Sept. A shareholder meeting will be held on 26 Oct. to pass the FHC resolution. The application will be submitted to the Ministry of Finance on 1 Nov.

• Analysis: Fubon will probably be the first financial group to become a FHC in Taiwan. Given large assets of more than NT$400bn, we believe Fubon Bank can benefit from various kinds of support from the group.

• Primasia View: Fubon is now trading at a P/B of 1.3x, not expensive given its future potential in Taiwan’s financial sectors.