CTBC Financial Holding Co (中信金控) has agreed to buy Tokyo Star Bank Ltd for about ￥52 billion (US$520 million), the first takeover of a Japanese commercial lender by a foreign bank, two people with knowledge of the matter said.
CTBC, the Taipei-based lender formerly known as Chinatrust, will buy a controlling stake from shareholders including Lone Star Funds, Shinsei Bank Ltd and Credit Agricole SA, the people said, asking not to be named because the information is private.
The acquisition is subject to approval from financial regulators in Japan and Taiwan, the people said.
The deal was reached after a meeting in Tokyo on Wednesday, one of the people said.
Talks had earlier stalled as Tokyo Star Bank’s rising profit and a rally in Japanese bank stocks boosted shareholders’ expectations of a higher price, three people with knowledge of the situation said on July 5.
CTBC said in a statement to Taiwan Stock Exchange yesterday that reports of an agreement to purchase Tokyo Star Bank were speculation, without elaborating.
The Nikkei Shimbun reported the agreement earlier yesterday and said the Taiwanese lender would increase Tokyo Star’s capital, without mentioning how it got the information.