TAIPEI, Sept 12 (Askume) – Taiwanese financial group Taishin (2887.TW) said it will increase its investment in peer Shin Kong (2888.TW) .
The long-running alliance between Taishin and Xinkang was announced last month.Unexpectedly faced a competitor CITIC Financial (2891.TW)
Taiwan’s financial services industry is mainly concentrated in the country. Taishin and Shinkong hope that through the merger, they can expand their business scope and become a more globally competitive company while creating long-term value.
Taishin and Shin Kong said late on Wednesday that Taishin would offer 0.672 common shares and 0.175 preferred shares for each Shin Kong share in exchange for 100% equity in a revised all-share transaction, up from a previously proposed swap of 0.6022 common shares. More lucrative.
Taishin said that based on Wednesday’s closing price, the offer would be equivalent to 14.18 baht per Shinkong share, 25% higher than the initial offering, however, the offering would be made through a mix of stock and cash, which is slightly lower than 14.55 baht per share.
“Our proposal applies to 100% of Xinkang shareholders, while China Trust’s proposal targets only 51% of shares. The remaining 49% of shareholders will be able to sell their shares to China Trust (or the market),” Taishin Chairman Lin Weiqi told reporters. What price will you get? “There’s a lot of uncertainty.”
The merger of Taishin and Shin Kong will create Taiwan’s fourth-largest financial company, with total assets expected to be about NT$8.3 trillion.
CTBC declined to comment on Taishin’s increased offer.
Gaining control of Shin Kong Holdings would make China Trust Taiwan’s largest financial company, with total assets expected to be NT$13.46 trillion, slightly more than Cathay Financial’s (2882.TW) NT$13.27 trillion .
Taishin shares fell 1.9% and Xinkang shares dropped 1.1% on Thursday morning, lagging a 3% gain in the broader market index (.TWII) . CTBC shares fell 0.6%.
