Fubon Financial Holding Co (富邦金控) expects to complete a merger with Jih Sun Financial Holding Co (日盛金控) in the first quarter of next year, which would be the first consolidation of financial holding companies in Taiwan, the firms said after shareholders approved the merger in their respective special general meetings on Friday.
Fubon Financial also expects to complete a merger of the two companies’ subsidiaries by the end of next year, including combining Taipei Fubon Commercial Bank (台北富邦銀行) and Jih Sun International Bank (日盛銀行), as well as Fubon Securities Co (富邦證券) and Jih Sun Securities Co (日盛證券).
After the merger, Fubon Financial would become the surviving entity.
Photo courtesy of Fubon Financial Holding Co
In December last year, Fubon Financial announced that it would launch a tender offer to acquire a 50.01 percent stake in Jih Sun Financial for NT$24.53 billion (US$879.8 million at the current exchange rate) or NT$13 per share.
As of Oct. 14, Fubon Financial owned a 57.93 percent stake in Jih Sun Financial.
The merger has secured approval from the Financial Supervisory Commission and the Fair Trade Commission.
Fubon Financial said it would spend NT$12.41 per share to fully take over Jih Sun Financial after dividend payment adjustments, and cited an audit report as saying that the transaction has been fair and appropriate.
Acting Fubon Financial chairman Eric Chen (陳盛德) said that the merger is expected to boost his company’s capital efficiency and cost optimization, and allow its banking and securities businesses to expand and provide more products to its customers.
Jih Sun Financial chairman Jerry Harn (韓蔚廷) said his company would apply for a delisting with the Taipei Exchange.
However, the timetable for the delisting and dissolution of the company would depend on approval from the financial authorities, Harn said.
Meanwhile, Fubon Financial chairman Richard Tsai (蔡明興) was to return to his post today, the company said.
He has been on a leave of absence since the middle of last month, when he was confirmed to have COVID-19 after returning from an overseas trip on Oct. 16.
Fubon Financial said that Tsai is in good health after being released from hospital on Tuesday, and is practicing self-health management.
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