Yuanta Fi­nan­cial Hold­ings to ac­quire Ta Chong Bank


Yuanta Fi­nan­cial Hold­ings (

) an­nounced on Thurs­day that it will ac­quire Ta Chong Bank (

) at a price tag of NT$56.55 bil­lion, which will make it the sev­enth-largest pri­vate bank in Tai­wan.

Un­der the two banks’ agree­ment, Yuanta will ac­quire Ta Chong’s eq­uity at the price of NT$8.15 per share.

Yuanta’s share price of NT$14.531, on the other hand, is com­puted by av­er­ag­ing out trad- ing prices 20 days, 40 days and 60 days be­fore the ac­qui­si­tion agree­ment was signed.

Through the share swap, Ta Chong’s share­hold­ers will re­ceive NT$8.15 in cash as well as Yuanta shares for each Ta Chong share they own.

Af­ter the ac­qui­si­tion, Yuanta’s as­set hold­ing will reach NT$1.25 tril­lion, with nearly NT$1 tril­lion in sav­ings, NT$75 mil­lion in loans, and 500,000 credit cards.

Yuanta cur­rently has 88 branches on the is­land while Ta Chong owns 67. Most of Yuanta’s banks are lo­cated in Cen­tral Tai­wan, while Ta Chong’s are cen­tered in North­ern and South­ern Tai­wan.

The two fi­nan­cial in­sti­tu­tions’ busi­nesses are likely to com­pli­ment each other. Yuanta’s pro­vides loans mostly to in­sti­tu­tions while Ta Chong’s cus­tomers con­sist mainly of pri­vate in­di­vid­u­als.

The ac­qui­si­tion rep­re­sents the first com­mer­cial bank merger in nine years. The Fi­nan­cial Su­per­vi­sory Com­mis­sion (FSC,

) said the boards of the two banks ap­proved the deal and that it looks for­ward to a suc­cess­ful merger be­tween the two.

The two banks have been in com­mu­ni­ca­tion with the FSC for about a month. It just so hap­pens that Ta Chong’s share prices be­gan to re­bound a month ear­lier.

To en­sure la­bor rights and in­ter­ests, Ta Chong’s hu­man re­source char­ters, la­bor agree­ment, and em­ployee salary and ben­e­fits will re­main un­changed three years af­ter the two banks’ merger.

Fi­nan­cial an­a­lysts have said the merger is in­dica­tive that “size does mat­ter” in the bank­ing in­dus­try.

(Left) The Ta Chong Bank ( ) build­ing is seen in this photo taken yesterday. (Right) The Yuanta Fi­nan­cial Hold­ings ( ) build­ing is seen in this photo taken yesterday. Yuanta Fi­nan­cial Hold­ings an­nounced on Thurs­day that it will ac­quire Ta Chong Bank.


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