Taiwan’s Fubon Financial, Jih Sun to complete merger in Q1 2022

Fubon Financial Holding Co., one of the most profitable Taiwanese financial firms, expects to complete a merger with Jih Sun Financial Holding Co. in the first quarter of next year, which will be the first consolidation of financial holding companies in Taiwan.

Fubon Financial also expects to complete a merger of the two companies’ subsidiaries by the end of 2022, including combining Taipei Fubon Commercial Bank and Jih Sun International Bank, as well as Fubon Securities and Jih Sun Securities.

After the merger, Fubon Financial will become the surviving entity.

The statement came after the two company’s shareholders approved the merger in their respective special general meeting on Friday.

In December 2020, Fubon Financial announced it was launching a tender offer to acquire a 50.01 percent stake in Jih Sun Financial for NT$24.53 billion (US$876 million) or NT$13 per share,

In March 2021, Fubon Financial acquired over 2.03 billion shares, or a 53.84 percent stake, in Jih Sun Financial, higher than the 1.89 billion-share target laid out in the merger plan it first announced in December.

Since then, it has continued to buy Jih Sun Financial’s outstanding shares from the market. As of Oct. 14, Fubon Financial owned a 57.93 percent stake in Jih Sun Financial.

The merger has secured regulatory approval from Taiwan’s Financial Supervisory Commission and the Fair Trade Commission.

Fubon Financial said it will continue to spend NT$12.41 to buy each Jih Sun Financial share after dividend payment adjustments, and cited an audit report as saying the transaction has been fair and appropriate.

Eric Chen (???), Fubon Financial’s acting chairman, said the merger is expected to boost his company’s capital efficiency and cost optimization, and allow its banking and securities businesses to expand and provide more products to its customers.

Jih Sun Financial Chairman Jerry Harn (???) said his company will apply for a delisting with the Taipei Exchange, which runs the local over-the-counter market. Harn said an exact timetable for the delisting and dissolution of the company will depend on approval from the financial authorities.

Harn expressed gratitude to Jih Sun Financial’s shareholders for their support and said he hoped the merger will be completed as soon as possible to create synergies.

Meanwhile, Fubon Financial said its chairman Richard Tsai (???) will return to his post on Nov. 8. He has been on a leave of absence since mid-October when he was confirmed to have contracted COVID-19 after returning from an overseas trip on Oct. 16.

Fubon Financial said Tsai is now in good health after being released from a hospital on Nov. 2, and is undergoing self-health management.

Tsai was originally to be on leave from Oct. 18 to 31, and his duties were temporarily taken over by Fubon Financial board director Daniel Tsai (???), but he extended his leave until Nov. 7 while Chen, who is the chairman of Taipei Fubon Bank, served as the acting chairman.

Despite Richard Tsai’s absence, Fubon Financial said the company’s operations remained normal.

Source: Focus Taiwan News Channel