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Rishengjin (5820-TW) has been selling for many years. Fubonjin (2881-TW) finally decided to restart the merger today (18). The board of directors decided to publicly acquire Rishengjin at a price of 13 yuan per share. It is expected to acquire more than 50% of the shares. Senior Vice President Wang Wei said that the decision to publicly acquire Rishengjin has mainly three main considerations, such as strengthening banks and securities; Once the acquisition is completed, it will not only be Jinjin’s first case, but also Fubon Jin’s approval to acquire Huayi Bank in 2013. Later, Wei breached the contract for 8 years and expanded the business territory of Fubon Gold by fusions and acquisitions.
Fubon Gold held its board of directors today and approved a public takeover of over 50% of Risheng Gold’s outstanding shares at NT $ 13.0 per share. The ultimate goal is to get 100% of the shares. The total estimated amount is from NT $ 24.526 billion to NT $ 49.04 billion. The merger plan is expected to be completed as soon as possible within the scope of the regulations. The public acquisition deadline will be from December 22, 2020 to February 1, 2021. In this case, the successful completion of public acquisitions and Mergers will help the financial industry to merge, take full advantage of the global effects of the industry, and set a milestone for the first national “gold melt”.
Wang Wei said that, under the trend of the long-term development of the global financial market, Evergrande, Risheng Financial’s long-term performance and share price performance are limited by scale and not easy to break. The public takeover of Fubon Gold is attractive at a premium. Provide an opportunity for Rishengjin Holdings to earn investment earnings.
Wang Wei explained that Fubon Financial’s decision to publicly acquire Rishengjin was based on three main considerations, namely: “Strengthening the banking and securities business; balancing diversified sources of income from the banking, insurance and securities business; responding to the government’s policy of combining financial resources and enhancing industry competition. force “.
Wang Wei said that if the public acquisition and merger plan can be successfully completed this time, it will help improve the economic scale and market position of banking and securities businesses. In terms of the securities business, Risheng Securities is a 59-year-old securities firm with a strong client base. According to public information from the Stock Exchange, as of September this year, Fubon Securities’ brokerage business had a 5.54% market share and ranked third in the market. Sheng Securities brokerage business has a 3.59% market share and ranks seventh in the market. After the merger, the market position is expected to increase significantly.
In terms of banking business, Taipei Fubon Bank currently has 135 branches in Taiwan and Risheng Bank 44. After the merger, the number of branches will become the highest among private banks, which will help balance regional development and deepen customer service. Hope to increase the business of SME customer groups.
Fubon Financial Holdings stated that if the public acquisition of more than 50% of the outstanding Risheng Financial Holdings shares is successfully completed in this case, in accordance with Article 18 of the Financial Participation Companies Act, it plans to merge Risheng Financial Holdings with Fubon Financial Holdings as the surviving company. Then, the merger of Risheng Securities and Fubon Securities, and the merger of Risheng Bank and Taipei Fubon Bank took place.
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