Latest Jihsun Securities News
Dec 18, 2020
Fubon Financial looks to acquire Jih Sun By Kao Shih-ching / Staff reporter Fubon Financial Holding Co (富邦金控) yesterday announced that it plans to acquire at least a 50 percent stake in Jih Sun Financial Holding Co (日盛金控) via a public tender offer valued at NT$24.53 billion (US$861 million), the first merger or acquisition of a financial holding company in the nation. Fubon eventually aims to fully acquire Jih Sun, in a deal that would cost NT$49.04 billion. Fubon said it had received approval from the Financial Supervisory Commission (FSC) to proceed with the deal. It is preparing to file another application with the nation’s competition watchdog, the Fair Trade Commission (FTC), company spokeswoman Sophia Wang (王瑋) told a news conference in Taipei. If the FTC gives the green light to the acquisition, Fubon plans to acquire the shares via public tender from Tuesday next week to Feb. 1, Wang said. With the minimum number of shares to be acquired set at 1.88 billion, or a 50 percent stake in Jih Sun, and the maximum set at 3.77 billion shares, or 100 percent, the public offer is estimated to cost Fubon between NT$24.53 billion and NT$49.04 billion, she said. Fubon would offer to buy each Jih Sun share for NT$13, representing a premium of 24.8 percent over its average closing price over the past 20 trading days, she said. Fubon, the nation’s second-largest financial holding company by assets after Cathay Financial Holding Co (國泰金控), expects the acquisition to enhance its presence in the brokerage and banking sectors, Wang said. It would initially borrow to fund the acquisition, but it would not raise its double-leverage ratio beyond the regulatory cap of 125 percent, she said. Fubon’s double-leverage ratio stood at 113.23 percent as of the end of October, about the mid point of ratios reported by the nation’s 15 financial holding companies, FSC data showed. The company plans to raise fresh capital by issuing common shares and special shares in the second quarter of next year, Wang said. “After integrating the 44 branches of Jih Sun International Bank (日盛銀行), the banking unit of Jih Sun Financial, with Taipei Fubon Commercial Bank’s (台北富邦銀行) 135 branches, our branch network would rank first among all banks in Taiwan,” she said. However, Taipei Fubon Bank has not yet decided if it would retain all of Jih Sun’s 44 branches and it would take balanced regional development into account when integrating the branches, she added. Fubon Securities Co (富邦證券), the company’s securities arm with the third-largest market share in the nation, would benefit from merging with Jih Sun Securities Co (日盛證券), as the latter ranks seventh by market share, Wang said. Whether Fubon would retain Jih Sun’s employees would mainly depend on their willingness to join the merged company, she said. Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.