Taipei,Sept.24,2012(CENS)--Fubon Financial Holding may win out in the scramble among Taiwanese financial holdings for Taiwanese-invested First Sino Bank in mainland China.Fubon Financial Holding may be able to acquire over 50%stake in First Sino Bank,at cost possibly exceeding NT$20 billion.
Fubon already owns 19.88%interest in Xiamen Bank.The addition of the stake in First Sino Bank,if materialized,will enable Fubon to get ahead of its domestic peers in the deployment in the mainland Chinese market.
Victor Kung,president of Fubon,refused to confirm the case,only saying that Fubon will actively take part in any acquisition case which can increase the value of shareholders.
Mainland China regulates that Taiwanese banks can own only up to 20%stake in mainland Chinese banks and thus cannot become a dominating shareholder.The regulation,though,doesn't apply to First Sino Bank,since the latter has the background of Taiwanese and Hong Kong capital.
In late 2008,Fubon Financial Holding bought into Xiamen Bank via Fubon Bank(Hong Kong),becoming the first Taiwanese financial company to own stake in mainland Chinese banks.The reported approval by the Chinese regulator for Fubon to acquire First Sino Bank highlights the magnitude and depth of Fubon in its deployment in the mainland Chinese market.
Fubon Financial Holding will reportedly offer over NT$20 billion to take over 51%stake in First Sino Bank.Insiders said that Fubon has sufficient fund to conclude the deal,since its shareholders'meeting this year approved an NT$40 billion cash capital program.
First Sino Bank is scheduled to carry out cash capital increment at the end of this year,raising its paid-in capital from 1.1 billion yuan to 20 billion yuan.China Banking Regulatory Commission originally allowed foreign banks to take part in the opening bidding for the cash-capital increment plan of First Sino Bank but subsequently reserved the bidding right to Taiwanese banks,in response to the proposal of the Taiwan Affairs Office,the State Council.
Since the tender exceeds NT$10 billion in scale,only a number of financial firms,including Fubon and Mega,were left in the final stage of the competition.
First Sino Bank is the first cross-Taiwan Strait joint-venture bank in the mainland.The Taiwanese major shareholder is Pou Chen Group,a leading footwear maker in Taiwan.First Sino Bank is a city bank with national license.Headquartered in Shanghai,it owns 13 branches,including Tianjin,Suzhou,and Shenzhen.
It managerial staffers hail mainly from Mega Bank.
(by Philip Liu)