Far Eastern Department Stores, a subsidiary of Taiwan-based Far Eastern Group, has announced plans to issue shares in Shanghai to finance expansion and lower outstanding debt.
Hsu Shu-tong, the chairman of Far Eastern Group, said that the company is looking at the issues of listing in Shanghai. He said that the major issues are if this is the right market and the market's ability to accept the offering.
Hsu said Taiwan and mainland China will sign an Economic Cooperation Framework Agreement in 2010 and the agreement is expected to open a channel for the company to enter the mainland market. He hopes the framework agreement will also allow Taiwanese companies to get listed in Shanghai.
One of the largest retailers in Taiwan, Far Eastern Department Stores realized sales of USD139 million during the quarter ending September 2009. Hsu revealed that the retailer is building five additional sites to increase its total number of sites in Taiwan and the mainland to 49. He said the company will enlarge its retail department in mainland China to increase its competitiveness in that marketplace.