Industrial Bank of Taiwan (IBT, 台灣工銀) announced yesterday that its shareholders had given the go-ahead to the proposed merger with local securities broker China Bills Finance Corp (中華票券) via a share swap.
The merger aims to increase IBT’s size and enable it to expend overseas.
The board of the companies approved the reverse takeover on June 25. China Bills will buy its largest shareholder IBT, which holds a 26.37 percent stake. Each IBT share will be exchanged for 1.241 shares in China Bills and the merged company will then be renamed IBT.
“The merger is expected to create synergies via the integration of the resources of both companies. It will also provide an opportunity for future expansion and lift the company’s competitiveness in the financial market,” IBT chairman Kenneth Lo (駱錦明) said in a statement.
The new IBT will have an increased capital base of NT$40.7 billion, up from NT$23.9 billion.
“Hong Kong is our first step,” IBT spokesperson Sabrina Wang (王莉) said by telephone.
IBT plans to begin operations at its first Hong Kong unit early next year after receiving approval from Hong Kong’s financial regulator in the middle of last month, Wang said.
IBT’s assets will increase to NT$300 billion, making it the 15th largest publicly owned bank in Taiwan.
China Bills shareholders also approved the deal yesterday at an extraordinary meeting, despite some disquiet about the share swap ratio.
The transaction will be completed on April 1 next year, the statement said. The merger will also need to be approved by the financial regulator.
Separately, Taishin Financial Holding Co (台新金控), which owns the nation’s third-largest credit card issuer, Taishin International Bank (台新銀行), yesterday filed a libel lawsuit against Chinese Nationalist Party (KMT) Legislator Chiu Yi (邱毅), a company statement said.
Taishin said Chiu had said that the company had paid a bribe to former first lady Wu Shu-jen (吳淑珍) in order to acquire state-run Chang Hwa Commercial Bank (彰化銀行).
“Chiu has repeatedly spread speculation and untrue information, which has severely hurt Taishin’s reputation,” the statement said.
Taishin has also requested compensation from Chiu.
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