Chinatrust Financial Holding Co (中信金控), the nation’s third-largest financial services provider by assets, yesterday approved plans to buy local fund house Truswell Securities Investment Trust Co (富鼎投信) for NT$466 million (US$15.6 million), in another bid to expand its business map.
The board of Chinatrust Financial gave its go-ahead to acquire a 98.6 percent stake in Truswell Investment, a move that still needs approval from the Financial Supervisory Commission, the buying firm said in a statement.
“We have a positive view on the outlook of the local wealth management market and intend to take better advantage of it after making Truswell a subsidiary,” Chinatrust Financial said.
The would-be unit could also serve as a platform allowing the group to make inroads into China’s asset management market, the company said.
Chinatrust Financial vowed to retain all Truswell employees and their benefits, and honor all agreements with its customers.
As of July, the 13-year-old Truswell had NT$2.49 billion in assets under management and a net worth of NT$306 million following a capital reduction.
The offer, priced at 1.52 times Truswell’s book value, fell in line with market evaluations, Chinatrust Financial said.
Chinatrust Financial shares closed up 0.56 percent to NT$17.8 yesterday, stronger than the TAIEX’s 0.27 percent fall, Taiwan Stock Exchange data showed.
Currently, Chinatrust Financial has eight subsidiaries spanning the banking, life insurance, securities brokerage, insurance agency, venture capital and lottery distribution businesses.
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