[Seminar] IDIC to hold seminars on cross-border mergers and acquisitions in Central and Southern Taiwan

October 31, 2005

The Industrial Development and Investment Center (IDIC) is holding the "Seminar on Cross-Border Mergers and Acquisitions" on Nov. 3 in Taichung and Nov. 4 in Tainan. The purpose of the seminar is to provide information on relevant laws and regulations for corporate mergers and acquisitions (M&A) in Taiwan, and to promote a proper understanding of corporate M&A among Taiwan companies and their personnel. All members of the business community and any other interested parties are encouraged to participate in the seminar, which is free of charge.

The IDIC noted that as the first session of the seminar was already held on Sept. 16 to a favorable response, it decided to hold two additional sessions in Taichung City and Tainan City to help companies in Central and Southern Taiwan learn more about corporate M&A.

The Central Taiwan session of the Seminar on Cross-Border Mergers and Acquisitions features three keynote speakers, including Gao Jing-yuan, Deputy Chief of the MOEA Department of Commerce, who will speak on the current situation and laws and regulations regarding corporate M&A; Scott Ouyoung, President of Globe Union Industrial Corp., who will speak on cross-border M&A cases; and Vincent Wu-tien Lin, Vice General Manager of Fuhwa Financial Holding Company Ltd., who will speak on how M&A is carried out.

The Southern Taiwan session of seminar features speeches by Tainan City Mayor Hsu Tain-Tsair and Tainan Industrial Development and Investment Promotion Committee Secretary-General Ye You-qing. There will also be three additional speeches by Deputy Chief Gao, who will speak again on the current situation and laws and regulations regarding corporate M&A; Professor Chiu Charles Hong-jen of the Department of International Business, College of Management at the National Taiwan University, who will present case analyses of cross-border M&A; and Chen Bing-zhang, Executive Chairman at De Zheng Investment Management Co., Ltd., who will speak on how M&A is carried out.

The IDIC noted that according to statistics in the World Investment Report issued by the United Nations Conference on Trade and Development, cross-border M&A in recent years comprised 50 to 80 percent of foreign direct investment (FDI). This reflects the typical situation for Foreign Direct Investment (FDI), as cross-border M&A is the main channel of FDI for advanced countries in Europe and America.

On Feb. 6, 2002, the Taiwan government announced the promulgation of the Business Mergers and Acquisitions Law. In 2004, there were 288 domestic M&A cases worth a total of NTD 151.89 billion, reflecting robust corporate M&A activity, and 15 cross-border cases worth a total of USD 220 million (approximately NTD 7 billion), approximately 3% of foreign investment for the same period. As cross-border M&A is not yet widespread in Taiwan, it is hoped that the seminar will promote laws and regulations related to M&A, encourage corporations to engage in international direct investment through M&A, and bring more foreign investment to Taiwan.

Two recent mergers that received attracted significant international attention were the Taiwanese company BenQ Corporation's purchase of Siemens AG's handset division, and Mainland Chinese company Lenovo purchase of IBM's PC unit. These developments show that M&A with international-level companies or similar departments can help Taiwan companies establish themselves as an international brand and expand their operations scope. In comparison to their counterparts in Europe, America, and Japan, Taiwan companies are smaller; but through cross-border M&A, these companies will be able to engage in more international direct investment and bring more foreign investment to Taiwan.

The Central Taiwan session of the Seminar on Corporate Mergers and Acquisitions for Taiwan Multinationals takes place on Thursday, Nov. 3, from 2-5pm at the B2 Laurel Salon of the Evergreen Laurel Hotel in Taichung, while the Southern Taiwan session takes place on Friday, Nov. 4, from 1:30pm to 5pm in the Banquet Hall B, Tayih Landis. All interested parties are encouraged to register to participate.

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