FET looking at tie-up

20 Mar 2007

Taiwan’s Far Eastern Group is reportedly considering a merger between its cellular subsidiary Far EasTone (FET) and its wireline division New Century InfoComm, which operates under the name Sparq. The group owns 47% of FET and 26% of Sparq. Market Watch in Taipei quotes FET’s chairman, Douglas Hsu, who says: ‘It’s been a topic for some time and the main reason for the merger is to achieve synergy and cost savings.’ He added: ‘We have to satisfy both companies’ shareholders, that’s the key issue.’ As yet there is still no time frame for the completion of the proposed tie-up. SingTel of Singapore has a 24.51% stake in Sparq. FET’s competitor Taiwan Mobile recently launched a buy-out of its wireline sister company Taiwan Fixed Network, a move which it said would simplify the group structure and achieve cost savings.