Hung Tai affiliates acquire 15.1% stake in Taipei 101

Central Depository Insurance Corp (CDIC, 中央存保) has auctioned a 15.1 percent stake in Taipei 101 operator Taipei Financial Center Corp (TFCC, 台北金融大樓), with two affiliates of the Hung Tai Group (宏泰集團) winning the bid for NT$8.6 billion (US$272.6 million).The shares, previously held by China United Trust Investment Co (中聯信託), were jointly acquired by Hung Tai Life Insurance Co (宏泰人壽) and Chengda Investment Co (呈達投資) at NT$38.72 per share — just 0.05 percent above the floor price of NT$38.7 set by CDIC.The auction attracted six bidders, CDIC said, adding that the transaction would proceed only if existing shareholders waive their right of first refusal by March 5.If finalized, the deal would reshape the ownership structure of Taiwan’s iconic skyscraper.Itochu Corp’s Taiwan unit is currently the largest shareholder, holding a 17.27 percent stake in TFCC, followed by China United Trust at 15.11 percent. Other major shareholders include Chunghwa Telecom Co (中華電信) with 11.76 percent, Mega Financial Holding Co (兆豐金控) with 10 percent and Taiwan Stock Exchange Corp (證交所) with 5.7 percent, alongside several state-linked lenders each owning between 3 percent and 5 percent.Despite its status as the largest shareholder, Itochu Taiwan holds only two of 13 seats on TFCC’s board. Government-affiliated entities control the remaining 11 seats.CDIC also occupies two of the company’s four supervisor positions.Taipei 101’s operating performance has strengthened and last year, revenue and profit both improved, driven by robust retail operations.Shopping mall sales totaled NT$24 billion, ranking Taipei 101 as the nation’s top-performing department store by sales.Including office leasing and observatory income, total revenue exceeded NT$25 billion, while earnings per share surpassed the 2024 level at NT$1.75.Hung Tai Life Insurance yesterday in a stock exchange filing said that its participation followed a prudent investment assessment, and aligned with its strategy of pursuing equity investments that deliver stable returns and support long-term operations.The transaction would elevate Hung Tai Group to one of TFCC’s major shareholders, subject to the waiver of pre-emptive rights by existing shareholders.Chunghwa Telecom said it would conduct an internal assessment after receiving formal notification of the deal.China United Trust was taken over by CDIC in 2007 after the Financial Supervisory Commission intervened amid an asset-stripping scandal and a surge in nonperforming loans.That year, CDIC first attempted to sell the trust’s TFCC stake at a floor price of NT$9.97 per share, or NT$3.69 billion in total, but the auction failed after attracting no bids and was subsequently shelved.