Fubon Financial Holding Co (
"Fubon will acquire 100 percent of TaipeiBank's shares at a preliminary share-swap ratio of 1.1165:1," Fubon Executive Vice President and Chief Financial Officer Victor Kung (
The nation's second-largest financial conglomerate includes Fubon Insurance Co (
The acquisition is worth NT$80.3 billion, based on Fubon Financial's stock price at NT$36 per share, Kung said.
Fubon and TaipeiBank are scheduled to hold shareholders' meetings on Oct. 4 to finalize the deal, he said.
Fubon Chairman Yu Chen (俞政) said the acquisition will make Fubon the ninth largest financial group in Asia by market value. The acquisition will also make Fubon Taiwan's biggest commercial banking system, Yu said.
Fubon currently operates 38 banking outlets in Taiwan.
TaipeiBank, which is about 44 percent controlled by the city government, has 80 local branches and 1.3 million customers.
The bank has NT$632 billion in assets and a comparatively low non-performing loan ratio of 3.05 percent. The lender operates 70 branches in Taipei.
"We will build on TaipeiBank's sophisticated branch network," Yu said.
"Fubon will be able to provide its wide range of services at TaipeiBank's branches," Fubon Group Vice Chairman Daniel Tsai (
TaipeiBank Chairman Lin Chi-yuan (
After the share-swap, the Taipei City Government will receive 15.6 percent of Fubon's shares and become its second-biggest shareholder with two seats on the company's 11-member board, Lee said.