Temasek to sell stake in Taiwan's E.Sun

Singapore's Temasek Holdings, the country's state investment firm, is likely to sell its 6.28% stake in Taiwan's E.Sun Financial Holding Co, sources reported.

Duh Wu-lin, deputy president of E.Sun said Temasek has quit its board seat in the Taiwan-listed financial holding company on Monday. But how it will sell the shares has not been decided. Duh estimated it would not be through the Taiwan Stock Market.

Temasek will redeem the US$267 million in E.Sun convertible bonds that it acquired in 2006, according to reports from Singapore.

However, a Temasek spokesman declined the rumor, said it was not their practice to discuss the specifics of the investment strategy.

Meanwhile, Morgan Stanley Private Equity Asia is planning to invest up to US$300 million to buy as much as 15% stake in E. Sun, Duh added.

Established in 2002, E. Sun owns E. Sun Commmercial Bank Ltd, E. Sun Securities Co Ltd and E. Sun Bills Finance Corporation. It is the island's tenth-largest financial holding company.