Sat, Dec 21, 2013 - Page 14 News List

Taiwan Business Quick Take

Staff writer

BANKING

CTBC to buy Taiwan Life

CTBC Financial Holding Co (中信金控) yesterday said a majority of its shareholders had approved the company’s plans to acquire Taiwan Life Insurance Co (台灣人壽). Under the terms of the deal, CTBC Financial would make Taiwan Life a wholly-owned entity through a share swap scheme by trading each Taiwan Life share for 1.44 shares in CTBC Financial. Shares of CTBC closed at NT$19.7 yesterday on the local bourse, meaning that the Taiwan Life deal could cost the company NT$25.74 billion (US$858.5 million). Shareholders yesterday also agreed to a proposal for the company’s banking subsidiary, CTBC Bank (中信銀行), to buy a 98.16 percent stake in Japan’s Tokyo Star Bank for ¥52 billion (US$497.74 million), CTBC Financial said in a filing to the Taiwan Stock Exchange.

Property

Fair value gets go-ahead

The Financial Supervisory Commission on Thursday gave the go-ahead for the use of fair value by domestic life insurers in appraising their property investments, starting next year. Taiwanese life insurers that opt for mark-to-market accounting rules are subject to higher reserve requirements and must hire two different property institutes to carry out the reappraisal, the commission said in a statement. The fair-value principle may not be used on undeveloped plots of land unless the insurers acquire construction permits for their development, the commission said.

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