CTBC Financial acquires Taiwan Life in US$1bn stock swap deal

May 14 2015 by InsuranceAsia News Staff

CTBC Financial Holding Co, a Taiwan-based financial holding company, is in the process of acquiring Taiwan Life Insurance Co through a stock swap for TWD32.35bn (US$1.05bn).

Under the stock swap deal,  CTBC Financial will swap 1.44 common shares in exchange for one Taiwan Life common share.

One analyst was quoted in the China Post as saying that the selling price was higher than the last deal that fell through last October.

The latest deal is expected to be completed by the end of 2015.

Last October, CTBC offered to acquire Taiwan Life but failed due to strong opposition from property developer Long Bong International, Taiwan Life’s major shareholder.

Taiwan Life had total assets of TWD500bn (US$16.31bn), 900,000 customers, and 1.58 million valid insurance policies. It also has 5,500 sales people.

The acquisition will boost the market share of CTBC’s life insurance arm, CTBC Life Insurance.

CTBC Life will become Taiwan’s fourth largest life insurer with a 10.1% market share after the acquisition.

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