FSC greenlights Taishin Financial-Shin Kong Financial merger

• By Crystal Hsu / Staff reporter

The Financial Supervisory Commission (FSC) yesterday gave a go-ahead for the proposed merger between Taishin Financial Holding Co (台新金控) and Shin Kong Financial Holding Co (新光金控).

The two financial conglomerates first announced the merger plan in August last year, which was approved by their respective shareholders in October.

Taishin Financial, a bank-focused institution known for its consistent profitability, is set to absorb Shin Kong Financial, which has long struggled with losses due to its life insurance-heavy business model.

The merged entity is to be named TS Financial Holding Co (台新新光金控), and would be Taiwan’s fourth-largest financial services provider by assets at NT$8.43 trillion (US$253.78 billion), with Taishin Financial as the surviving entity, the commission said.

The merger would proceed via a share swap scheme in which Shin Kong Financial shareholders would receive 0.672 Taishin Financial common shares for each common share they hold.

Taishin Financial would also offer an additional exchange of 0.175 preferred shares for one Shin Kong Financial preferred share to expedite the deal.

With the regulatory approval secured, the two companies must now set a timeline for the full integration and the delisting of Shin Kong Financial from the bourse, the commission said.