CITIC Financial announced that it bought Shin Kong Gold for 14.55 yuan and acquired 51% of the shares | Financial Pulse |

CITIC Financial Holdings held an interim board of directors on the 23rd, launched a major reinvestment project, applied for a public acquisition, invested in Shin Kong Financial Holdings, and acquired 51% of the equity at 14.55 yuan per share.

The following is the full text of CITIC Financial’s press release

China Trust Financial Holdings Company (known as “CITIC Financial Holdings”) held an interim board of directors today (23rd), approved a major reinvestment project, and applied for an investment in Shin Kong Financial Holdings Company (referred to as “Shin Kong Financial Holdings”), since many investors have inquired about the relevant information, the company has decided to self-disclose relevant matters.

China Trust Financial Holdings approved a resolution at the 45th meeting of the eighth session of the Board of Directors on August 20 to apply for a public acquisition of shares of Shin Kong Financial Holdings, based on the advice of a financial advisor, the reasonable acquisition price was 14.55 Euro is the highest value of Shin Kong Financial Holdings share.

In response to the three review principles revealed by the competent authorities regarding financial consolidation: 1. The procedures must be legal and compliant, 2. Maintenance of order and stability of the financial market, and 3. Protection of rights and shareholder interests.

CITIC Financial Holdings held an interim board meeting today and approved an increase in the acquisition ratio of this issue The upper limit was increased from the original 25% to 51%, so that they had access to more than half of to get the fairness of this case. Shin Kong Financial Holdings at the same time, which helps maintain market order and stability.

The public offering price per share is approximately 1 share of Shin Kong Financial Holdings common stock in exchange for 0.3132 shares of CITIC Financial Holdings common stock and approximately NT$4.09 in cash, to acquire 10% to 51% of Shin Kong’s equity . Financial Commitments. If calculated based on the stock price of CITIC Financial Holdings of about NT$33.4 per share in the past three days, the acquisition price per share is about NT$14.55 (cash plus dividends). After receiving investment approval from the relevant authority, the conditions for approval from the relevant authority will be submitted to the board of directors and announced again.

CITIC Financial Holdings has decided to publicly acquire shares of Shin Kong Financial Holdings. and the third largest life insurance company in Taiwan.

Take for example the merger of CITIC Financial Holdings with Taiwan Life Insurance Company (“Taiwan Life”) as an example increase from before the merger With a loss of NT$1.8 billion in one year, the total profit in the last ten years reached as the first half of the year NT $ 117.3 billion that CITIC Financial Holdings has the ability to create a large synergy, and can propose a higher purchase price.

CITIC Financial Holdings’ total assets reached NT$8.38 trillion, and its total market value reached NT$649.4 billion, which is more than Shin Kong Financial Holdings’ total assets of NT$5.08 trillion and its total market value of NT$213.6 billion. The financial industry will be strengthened by connecting the big with the small, and the finances will be more stable than by connecting the small with the big.

Judging from the successful experience of the Taiwan Life merger, the number of life insurance dealers after the merger with Shin Kong Financial Holdings will expand from 8,000 to 19,000 in the future, which will help increase the value of new life insurance contracts from after Taiwan Life’s experience, life insurance reporting can be gradually improved The rate will be increased to 3.8%, improving investment results The number of insurance customers of both parties also reaches 3 million, and they can further co -work with banks to sell out in the future, all employees will get better protection and development opportunities.

Therefore, CITIC Financial Holdings believes that through this public purchase, it will help Shin Kong Financial Holdings, whose total assets exceed NT$5 trillion, to generate better operating results than Taiwan Life , and together achieve the goal of becoming a regional international financial institution. vision and create higher shareholder value.