Ta Ching Securities Co (大慶證券), a small-sized securities firm headquartered in Taipei City, said yesterday its board of directors had agreed to acquire rival Fullshun Securities Co (富順證券) for NT$860 million (US$29.67 million) in cash.
Ta Ching expects the merger with Fullshun Securities, which is based in Sanchong (三重), New Taipei City (新北市), to increase its economies of scale and competitiveness, Ta Ching said in a stock exchange filing.
Under the deal, Ta Ching will pay NT$21.517 per share to Full-shun shareholders. Once the deal gains approval from shareholders on Oct. 5 and receives the go-ahead from the Financial Supervisory Commission, Ta Ching said it would add two branches to its current network of 12 branches.
The transaction is expected to close on Dec. 25, the Taipei City securities firm said.
Ta Ching has a market share of a mere 0.6 percent of the domestic stock brokerage sector. The Chuang (莊) family is the major shareholder, controlling a stake of nearly 65 percent in the company and five of the seven seats on the board.
In the first six months, Ta Ching reported a net loss of NT$48.47 million, or NT$0.17 per share, on a revenue of NT$373 million. That was compared with a net loss of NT$39.46 million, or NT$0.15 per share, a year earlier, with a revenue of NT$430 million.
Ta Ching shares closed down 1.73 percent to NT$14.2 yesterday on the Taiwan Stock Exchange before the merger was announced. Fullshun Securities is not listed on the local bourse.