LINE considers investing in Taiwan investment firm: NDC

2017/08/10 21:23:49 fontsize-small fontsize-default fontsize-big
CNA file photo

CNA file photo

Taipei, Aug. 10 (CNA) LINE Corp., a South Korea-based messaging App provider is evaluating the possibility of investing in a planned government-backed investment firm in Taiwan under supervision of the National Development Council (NDC), deputy chief Kung Ming-hsin (龔明鑫) said on Thursday.

Kung told the press that LINE has been in contact with the government about a possible injection of capital into one of three funds proposed by the investment firm Taiwania Capital Management Corp. (台杉投資管理股份有限公司).

The three funds are each expected to reach up to NT$10 billion (US$330 million), according to the NDC, the top economic planning agency in Taiwan.

The government has set up a preparatory office for Taiwania, which will initially have paid-in capital of NT$250 million (US$8.25 million) and the new company is expected to become operational in early September, its goal being to speed up the pace of development in innovative industries in Taiwan.

Kung said that the first fund planned by Taiwania aims to invest in the Internet of Things (IoT) and expects to attract six to seven investors in the first round of fund raising, not including LINE.

In the first round of fund raising, the IoT fund will have an injection of NT$6-7 billion, the NDC said.

Kung said that as it becomes necessary to boost the size of the fund for IoT development, LINE is likely to invest in the second or third round of fund raising. The planned NT$10 billion for the IoT fund is expected to be raised by the end of September, he added.

In response to Kung's comments, LINE said that it is evaluating every possible investment opportunity in Taiwan and no decision has yet been made.

Kung said that the second fund planned by Taiwania will target the biotech/medical care business and is expected to complete fund raising by the end of the year. The NDC said the third fund will focus on other innovative industries such as green energy and smart machinery, but no time table for fund raising activities has been determined.

The largest shareholder in Taiwania, named after a large coniferous tree in the cypress family, which is native to east Asia and grows in the mountains of central Taiwan, will be the National Development Fund with a 40 percent stake.

Kung said that Taiwania welcomes investments by foreign companies as their involvement will enable Taiwan to better access innovative industries around the world.

(By Chen Cheng-wei and Frances Huang)

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