The board of Jih Sun Financial Holding Co (日盛金控) yesterday agreed to sell 1.387 billion new common shares to Capital Target Ltd, a subsidiary under Best Fortune Investments Ltd, at NT$4 apiece, according to an exchange filing.
This will attract a total capital injection of NT$5.55 billion (US$165 million) from the new strategic investor after Jih Sun’s major shareholders yesterday gave up their right to take up the shares — part of its issuance of 2.35 billion shares to raise NT$9.4 billion as requested by the financial regulator, the company’s statement said.
After the proposed capital injection, Shihsei Bank took up a controlling 36 percent stake in Jih Sun Financial, followed by 28 percent by Capital Target, another US shareholder, the company said yesterday in a statement.
The financial service provider’s board also undertook a reshuffle yesterday after its acting chairman, Chen Kuo-ho (陳國和), who still owns an approximate 20 percent stake in the company, submitted his resignation, spokesman Clemens Chung (鍾芳程) said on the telephone.
Under the new boardroom arrangement, Capital Target took four seats of the seven-member board while Shinsei Bank retains the remaining three seats.
The newly reshuffled board then elected Donald Chen (陳棠), formerly chairman of the Land Bank of Taiwan (土地銀行) and the Genius Insurance Brokers Co (精聯集團), to be its chairman while retaining Chen Kuo-ho as honorary chairman, Chung said.
Jih Sun Financial shares yesterday rose NT$0.28, almost by the 7 percent limit, to close at NT$4.33 per share, outperforming the 0.6 percent increase on the benchmark TAIEX.
The stock has gained nearly 45 percent this year, compared with a 28 percent gain on the TAIEX.
Donald Chen served as the chairman of Land Bank between 1997 and 2000 after serving as the bank’s president and vice president. Prior to his work at the Land Bank, Chen served as the chairman of Taiwan Land Development Corp (台灣土地開發公司) and the president of Taiwan Life Insurance Co (台灣人壽).