(March 28): The board of Taiwan’s SinoPac Bank approved a merger with King’s Town Bank, according to an exchange filing from the lenders’ parent financial holding company late Friday.
SinoPac Bank 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, which has full ownership of both banks, the filing said.
The merger would make SinoPac Bank the fifth biggest privately-owned lender in Taiwan, with NT$3.2 trillion (US$100 billion) assets under management, according to local media.
The deal aims to integrate both banks’ branch networks and customer bases, leveraging King’s Town’s strengths in corporate banking and financial market businesses, according to the filing.
SinoPac Financial Holdings 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.
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.
See also: Pernod, Jack Daniel owner Brown-Forman in merger talks
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