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Bloomberg
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The board of Bank SinoPac Co (永豐銀行) approved a merger with King’s Town Bank Co (京城銀行), according to an exchange document filed on Friday from the lenders’ parent financial holding company.
Bank SinoPac plans to issue 1.865 billion new common shares at NT$24 per share, along with a cash component, to acquire all shares of King’s Town Bank held by SinoPac Financial Holdings Co (永豐金控), which has full ownership of both banks, the Taiwan Stock Exchange filing said.
The merger would make Bank SinoPac the fifth-biggest privately owned lender and the 12th among all banks in Taiwan, with NT$3.19 trillion (US$100.06 billion) assets under management, local media reported.
A cyclist rides past a Bank SinoPac branch in Taipei’s Wenshan District on June 19, 2017.
Photo: CNA
The deal aims to integrate the banks’ branch networks and customer bases, leveraging King’s Town Bank’s strengths in corporate banking and financial market businesses, the filing said.
The merger would take effect on a date to be set following regulatory approval, it said.
SinoPac Financial in 2024 approved a share-swap deal to buy out King’s Town Bank as part of the group’s plan to expand asset scale and market share. It completed the acquisition of King’s Town Bank on Oct. 1 last year.
Taiwanese regulators are seeking to beef up the financial industry and diversify the economy away from tech, with consolidation of financial institutions seen as a way to achieve that goal.
