E.Sun Financial Holding Co (玉山金控) is to acquire a more than 90 percent stake in US-based Prudential Financial Inc’s subsidiary in Taiwan to grow its wealth management business.
The company’s board of directors approved a plan to acquire a 91.2 percent stake in PGIM Securities Investment Trust Enterprise Co (保德信投信) for about NT$2.76 billion (US$83.53 million), E.Sun Financial president Chen Mao-chin (陳茂欽) said at a news conference on Tuesday night.
E.Sun Financial and Prudential Financial signed a memorandum of understanding in November last year that paved the way for the acquisition, Chen said.
Photo: CNA
The acquisition comes at a time when the government has set its sights on transforming Taiwan into a regional wealth management hub.
E.Sun Financial in 2008 disposed of its investment trust assets, but the company earlier this year decided to rebuild its presence in the field by acquiring PGIM, Chen said.
The move should also help E.Sun Financial better integrate its existing banking and securities businesses to create synergies and sharpen the company’s competitive edge, he said.
With the sale of its unit, Prudential Financial would withdraw from the Taiwanese market, local news media reported.
The deal with E.Sun Financial comes after Prudential Financial sold its insurance assets to Taishin Financial Holding Co (台新金控) in 2020.
PGIM, which has assets under management totaling about NT$160.8 billion, specializes in raising funds for mutual funds and serves as a sale agent in Taiwan for foreign-issued mutual funds.
E.Sun Financial would acquire the Prudential unit with cash, which would come from the company’s existing cash reserves or sales of short-term commercial paper, Chen said.
The acquisition is unlikely to affect the company’s future dividend payouts to its shareholders, he said.
E.Sun Financial would file an application with the Financial Supervisory Commission for regulatory approval as soon as possible, he added.
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