Taiwan Mobile Co. plans to pay NT$8.4 billion ($290 million) for control of Fubon Multimedia Technology Co., the owner of Momo electronic shopping and department stores, to boost revenue from non-voice businesses.
Taiwan Mobile will buy 51 percent of the Taipei-based owner of the Momo brand shopping website, TV channels and stores from Fubon Financial Holding Co., Josephine Juan, a spokeswoman at the Taiwanese wireless carrier, said by phone today. The purchase of existing shares was approved by Taiwan Mobile’s board and requires regulatory approval, the company said in a statement.
Taiwan’s second-largest mobile-phone operator is looking to tap television and the Internet to secure revenue growth as the telecommunications market slows. The Taipei-based carrier may also pursue an acquisition of cable TV operator Kbro Co. after Taiwan’s legislature approves changes to media ownership laws.
Fubon Financial will cut its holdings in Fubon Multimedia Technology to 15 percent, with other stake buyers including China Chemical & Pharmaceutical Co., Juan said.
Fubon Financial is a major shareholder of Taiwan Mobile. Fubon’s chairman, Daniel Tsai, is vice chairman of the operator. Daniel, his brother Richard Tsai and Fubon president Victor Kung jointly own Fubon Multimedia Co., a holding company that owns a major stake in Kbro.