Ed Rogers, chairman of the BGR Group, formerly called Barbour Griffith & Rogers, LLC (BGR), has called off a syndicated loan, which he had planned to leverage to acquire a stake in Chinatrust Financial Holding Co (中信金), a Chinese-language United Daily News report said yesterday, citing unnamed sources.
The media report said that Rogers has informed his lenders to call off the loan, as the Taiwanese financial service provider hasn’t yet finalized the details of its NT$42 billion (US$1.3 billion) fund-raising plan and schedule.
Chinatrust Financial is expected to discuss the capital-raising plan with shareholders tomorrow during its annual shareholders’ meeting.
Rogers originally planned to join Hong Kong investor Peter Kwok (郭炎), who is seeking to obtain a 9.9 percent stake in Chinatrust Financial for NT$21 billion, to acquire a combined 14 percent stake in the financial firm during a planned equity offering, via a private placement.
The private offering, however, ran into problems when the national financial regulator expressed concern and the China-associated background of its potential buyers, such as Kwok, a former member of the Chinese People’s Political Consultative Conference, triggered controversy.
Chinatrust Financial shares yesterday rose by NT$0.20 to close at NT$18.25 per share.