Cathay Financial has bought a 3.45 percent stake in Taishin Financial for T$4.7 billion or $155 million from private equity fund Newbridge Capital.
The investment, the first such for Cathay, could be a sign that Taiwan's over-crowded banking industry would start to consolidate.
Cathay paid T$18.3 per share for 259 million convertible preferred shares, about 74 percent more than Taishin's closing price of T$10.5. .
U.S.-based Newbridge Capital invested T$27 billion in 2006 for a 18 percent stake in Taishin and was its largest single foreign stake holder.
For the source of this story, click here.
Do you know more about this story? Contact us anonymously through this link.