Waterland Financial Holdings Co (國票金控) yesterday announced plans to acquire a majority of COTA Commercial Bank (三信商銀) shares in circulation with a view to expanding into the local banking market.
Waterland Financial, the nation’s smallest financial conglomerate, said in a stock exchange filing that it would offer NT$16.5 per share for COTA Bank, a 22 percent premium over the latter’s net worth at NT$13.52 per share last quarter.
“The planned buyout, if carried out successfully, will allow Waterland Financial to increase its number of customers and outlets as well as operating efficiency,” company chairman Wea Chi-lin (魏啟林) told reporters.
Currently, Waterland Financial limits its business mainly to bills financing.
The conglomerate intends to buy at least 257 million shares, or 51 percent of the total, of the Taichung-based bank, which has capital of about NT$5.03 billion and NT$140.2 billion in assets.
About 80 percent of COTA shares are in circulation although they are not listed on a local bourse. The buyout starts on Monday next week and runs through Aug. 3, the filing said.
Established as a Taichung credit cooperative a century ago, COTA Bank now has 27 outlets and 1,130 employees.
Waterland Financial said it would retain most of them since it has no banking experience of its own.
The group has sought to expand its scale unsuccessfully in recent years.
In 2013, it lost a bid to acquire Taiwan Life Insurance Co (台灣人壽保險) to CTBC Financial Holding Co (中信金控).
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