Taipei, Fubon Financial Holding Co. announced Friday that its board of directors has approved a plan to acquire smaller rival Jih Sun Financial Holdings in what would be the first merger of two domestic financial holding companies.
In a presentation of material information, Fubon said it intends to purchase more than 50 percent of Jih Sun shares at NT$13 (US$0.46) a share through open trading, which would represent a 24.8 percent premium above Jih Sun’s average share price over the past month.
The acquisition plan was approved by Taiwan’s top financial regulator, the Financial Supervisory Commission (FSC), on Thursday, and would represent the first time ever in Taiwan that one domestic financial holding company acquired another.
The move was helped by the FSC’s revision of regulations in 2018 to encourage mergers in an industry thought to be plagued by the presence of too many players.
Fubon will spend an estimated NT$24.53 billion to NT$49.04 billion to acquire Jih Sun, depending on the size of the stake of which it can gain ownership.
The open purchase of shares will run from Dec. 22, 2020, to Feb. 1, 2021, according to Fubon.
Jih Sun, which is traded on the Taipei Exchange, closed up 0.46 percent at NT$10.95 per share on Friday. The stock’s lowest closing price in December was NT$10.05 on Dec. 11.
Fubon has ranked as Taiwan’s second largest financial holding company by assets in recent years and its most profitable financial holding company in terms of earnings per share.
Source: Focus Taiwan News Channel