Yuanta Bank set to ac­quire South Korean coun­ter­part

The China Post - - BUSINESS -

Yuanta Com­mer­cial Bank, the bank­ing unit of Tai­wan-based Yuanta Fi­nan­cial Hold­ing Co., has agreed to ac­quire South Korea’s Han­shin Sav­ings Bank. The deal marks the first ac­qui­si­tion by a Tai­wanese bank in the South Korean mar­ket.

Un­der the plan ap­proved by Yuanta Bank’s board of di­rec­tors, the Tai­wanese bank will spend 135.10 bil­lion South Korean won or about NT$3.65 bil­lion (US$112 mil­lion) to ac­quire a 100 per­cent stake in Han­shin bank.

The ac­qui­si­tion deal is pend­ing ap­proval from share­hold­ers of both banks and from fi­nan­cial author­i­ties in Tai­wan and South Korea. Af­ter the deal is com­pleted, Han­shin will be­come the sec­ond over­seas sub­sidiary of Yuanta Bank. Its first over­seas unit, Tong Yang Sav­ings Bank Inc. in the Philip­pines, was ac­quired ear­lier this year.

It was the sec­ond buy-in deal an­nounced by Yuanta Bank in less than 10 days. On Aug. 13, the bank said that it will spend NT$56.55 bil­lion to ac­quire a 100 per­cent stake in Tai­wanese ri­val Ta Chong Bank.

Yuanta Bank said that with trad­ing and in­vest­ment ac­tiv­ity be­tween Tai­wan and South Korea con­tin­u­ing to grow, it is worth seek­ing busi­ness op­por­tu­ni­ties in the Korean mar­ket through such a buy-in deal. It added that South Korea has great po­ten­tial to grow.

Ac­cord­ing to Yuanta Bank, as of the end of 2014, Tai­wan’s in­vest­ments in South Korea to­taled US$ 780 mil­lion, while South Korea’s in­vest­ments in Tai­wan sur­passed US$1 bil­lion. Both sides are eye­ing each other’s fi­nan­cial, elec­tron­ics and ser­vices sec­tors.

Yuanta Bank said that Han­shin bank was es­tab­lished in 1988 and is head­quar­tered in Seoul. Cur­rently, the Korean bank op­er­ates two branches in the cap­i­tal city of South Korea.

As of the end of March, Han­shin bank had a paid-in cap­i­tal of about NT$1.825 bil­lion, to­tal as­sets worth NT$9.221 bil­lion and net worth to­tal­ing NT$4.73 bil­lion, Yuanta Bank said. Han­shin also held NT$4.35 bil­lion in de­posits and ex­tended a to­tal of NT$1.42 bil­lion in loans as of the end of the first quar­ter, Yuanta Bank added.

Ahead of the deal to buy Han­shin bank, Yuanta Se­cu­ri­ties, the flag­ship se­cu­ri­ties oper­a­tions of Yuanta Fi­nan­cial, al­ready owned a 52.17 per­cent stake in Yuanta Se­cu­ri­ties South Korea Co.

Yuanta Fi­nan­cial said that the fi­nan­cial hold­ing com­pa­nies will take ad­van­tage of the pres­ence of Yuanta Se­cu­ri­ties South Korea and Han­shin bank to fur­ther pen­e­trate the fi­nan­cial mar­ket in South Korea.

Mean­while, a board meet­ing of Ta Chong Bank held Fri­day ap­proved a deal for Yuanta Bank to buy a 100 per­cent stake in Ta Chong.

Af­ter the ac­qui­si­tion deal, which is sched­uled to be com­pleted in the first quar­ter of next year, the num­ber of Yu­nata Bank branches in Tai­wan will in­crease from 88 to 155 and the bank’s to­tal as­sets will ex­pand to NT$1.25 tril­lion.

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