Fubon Financial Holding Co. said Tuesday that its merger with Jih Sun Financial Holding Co. is expected to be completed by the end of the year, as regulatory approval was obtained earlier in the day.
The merger will result in the first consolidation of financial holding companies in Taiwan, with Fubon Financial becoming the surviving entity.
The deal will be completed by December, after which Fubon will push for consolidation of Fubon Securities and Jih Sun Securities, as well as a merger of Taipei Fubon Commercial Bank and Jih Sun International Bank in the first half of next year, Fubon Financial Chairman Richard Tsai (蔡明興) said.
Earlier in the day, Lin Chih-chi (林志吉), deputy director general of the Financial Supervisory Commission’s (FSC) Banking Bureau, said regulatory approval had been granted for a cash takeover of Jin Sun Financial by Fubon Financial.
Citing a plan submitted by Fubon Financial, Lin said the chairmen of the two companies will decide on an exact completion date, and 30 days before that date, they will file an application with the Taipei Exchange for Jih Sun Financial’s delisting on the over-the-counter market, where its shares have been trading since 2002.
In December 2020, Fubon Financial announced it was launching a tender offer to acquire a 50.01 percent stake in Jih Sun Financial for NT$24.53 billion (US$778 million), or NT$13 per share.
In March 2021, Fubon Financial acquired over 2.03 billion shares, or a 53.84 percent stake, in Jih Sun Financial, higher than the 1.89 billion-share target laid out in the merger plan that was announced in 2020.
Since then, Fubon Financial has been buying outstanding Jih Sun Financial on the market.
The boards of the two companies approved the merger proposal in September last year, and two months later their shareholders gave approval for Fubon Financial to acquire the remaining outstanding Jih Sun Financial shares.
As of March 31, Fubon Financial was holding a 58.73 percent stake in Jih Sun Financial.
The two companies agreed in May to adjust the acquisition price from NT$12.41 per share to NT$11.71, after taking into account dividend payments.
Fubon Financial said it had long been eyeing Jih Sun Financial’s securities business, and with the merger deal, Fubon Securities will cement its status among the top three securities firms in Taiwan.
In addition, the company said, after acquiring Jih Sun Bank, Fubon Bank is expected to enhance its services to small and medium-sized enterprises through a larger number of branches around Taiwan, as it will become the biggest private bank in the country.
Source: Focus Taiwan News Channel