Taiwan Cooperative Bank wins nod to buy back 100 mln shares

Taiwan Cooperative Bank, the island's second largest lender by assets, has won approval from directorate to repurchase 100 million shares for up to NTD 43.95 billion from Aug. 6 to Oct. 4, as per industry sources.

The Taiwanese lender is expecting to buy back the 100 million shares at a price ranging from NTD 18.0 to NTD 30.05 apiece, accounting for 2.10% of its outstanding shares. The bank said the fund for the shares buyback accounts for 0.51% of its working capital.

A local newspaper indicated the bank's shares are undervalued, which is the main reason for the bank to consider the share repurchasing plan.

Many other financial institutions in the island are also considering buying back shares from their investors, said Lee Sush-der, the Finance Minister of Taiwan.

The bank's share price tumbled 18.6% compared with the record high of NTD3 3.15 per share on May 30.