Fubon Financial Holding Co (富邦金控) yesterday received approval from the Financial Supervisory Commission for its merger with Jih Sun Financial Holding Co (日盛金控), marking the first merger-and-acquisition deal between the nation’s financial holding companies.
The approval came about two years after Fubon Financial launched a tender offer to acquire a 50 percent stake in Jih Sun Financial for NT$13 per share in December 2020, valuing the deal at NT$24.53 billion (US$782.6 million).
The merger would reduce the number of local financial holding companies from 15 to 14.
Photo courtesy of Fubon Financial Holding Co
GREEN LIGHT
Shareholders of the two companies gave the go-ahead to the deal on Nov. 5 last year at extraordinary meetings.
Shareholders in June also agreed to Fubon Financial’s offering price of NT$11.71 cash per share to fully absorb Jih Sun Financial.
Fubon Financial, the nation’s second-biggest financial holding company by assets, had increased its shareholding of Jih Sun Financial to 73.91 percent as of May 31, according to a company filing with the Taiwan Stock Exchange.
Fubon Financial president Jerry Harn (韓蔚廷) last month told investors that the firm planned to complete its merger with Jih Sun Financial by the end of this year and to complete consolidating their units next year.
CUTTING COSTS
The consolidation is expected to boost Fubon Financial’s capital efficiency and cost optimization, and allow its banking and securities businesses to expand and provide more products to customers, the company has said.
Following the transaction, Fubon Financial would be the remaining entity, while Jih Sun Financial would be delisted from the Taipei Exchange, the Financial Supervisory Commission said in a statement.
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