News eDaily12 Jul 2017

Taiwan:Investment services firm snaps up 25% of life insurer

12 Jul 2017

Investment services company, China Development Financial (CDF), has announced that its board of directors has approved a proposal to launch a tender offer to acquire a stake of up to 25.33% in China Life at NT$35 (US$1.15) per share. The acquisition will complete the suitor's range of services by including life insurance business.

The proposed price represented a 14.94% premium over the life insurer's closing price of NT$30.45 in the last trading session of last week.

KGI Securities, one of the subsidiaries of CDF, currently owns a roughly 9% stake in China Life. After the acquisition deal, CDF is expected to hold a 35% stake in China Life and become the largest shareholder of the life insurer.

The acquisition, which is expected to cost CDF NT$30.8 billion, is pending regulatory approval. CDF said that that it expects the deal to be completed by the end of September.

CDF is engaged in venture capital and investment banking business in Taiwan.

After the acquisition, CDF's total net worth will increase to NT$217.9 billion from the current NT$165 billion to rank it as the sixth largest financial holding company in Taiwan.

 


 

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