Aiming to acquire investments in Taiwan, China’s Shanghai International Group (SIG) will buy between NT$600 million (about US$18.75 million) and NT$1 billion (US$31.25 million) of shares in Nan Kang Rubber Tire Corp., a major tire maker in Taiwan.
To buy enough shares in become the second-biggest shareholder in Nan Kang, SIG will be the first China-based firm to purchase shares in a Taiwanese listed company.
Nan Kang honorary chairman H.P. Lin admitted a China-based firm is eager to become a big shareholder in his company without revealing the name of the company.
With the memorandum of understanding (MOU) for the financial industry having come into effect on January 16, a few qualified domestic institutional investors (QDIIs) in China have visited Taiwan to check the investment environment. With Taiwan prohibiting QDII investments in domestic construction firms, SIG is targeting land-rich Nan Kang to profit from the currently robust realty market in Taiwan.
Nan Kang has been approved to develop its old factory of 13,000 pings (one ping equals 36 square feet) in Nankang District of Taipei City into a residential and office complex, with its sale to generate NT$60 billion (US$1.87 billion) to be a steady revenue stream for Nan Kang over five years. The project will be launched in April this year and completed by 2014.
(Source: irco.biz)
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