Taishin Financial Holdings Applies to Acquire 100% Equity Stake in Prudential Life Taiwan; Deal Set for Consummation After Taishin Fulfills Commitments Made to FSC and FSC Issues Letter of Approval
2021-06-01
On 31 May 2021, the Financial Supervisory Commission (FSC) approved an application by Taishin Financial Holding Co., Ltd. (Taishin) to acquire a 100% equity stake in Prudential Life Insurance Company of Taiwan Inc. (Prudential Taiwan). The deal will be consummated after Taishin fulfills the commitments it made in the acquisition proposal it submitted to the FSC and the FSC issues a letter of approval.
The FSC reviewed the application and found that the proposed acquisition was in line with the applicable provisions of the "Financial Holding Company Act" and the "Insurance Act," but granted only provisional approval because Taishin has made commitments to the FSC (e.g. to safeguard the interests of the customers and employees of Prudential Taiwan, to continue operating the business of Prudential Taiwan for a long time to come, and to carry out capital injections over the coming 10 years as the need arises at Prudential Taiwan), which are subject to approval by Taishin's board of directors. The deal will be consummated after the FSC reviews and approves the following items: (a) the meeting agenda and minutes of a meeting in which Taishin’s board of directors approves the commitments; (b) a contract between Taishin and a custodian institution, in which Taishin authorizes the institution to maintain custody and dispose of the shares of Chang Hwa Bank that owned by Taishin; and (c) an itemized statement of assets under custody, provided by the custodian institution.
The FSC has required Taishin to: (a) fulfill the commitments it made to the FSC, and to sell off aforementioned custody of assets in order to obtain funds needed to settle the share acquisition; (b) issue a material information disclosure in accordance with related regulations governing information disclosures; and (c) submit its commitments to FSC to its shareholders meeting.
The FSC reviewed the application and found that the proposed acquisition was in line with the applicable provisions of the "Financial Holding Company Act" and the "Insurance Act," but granted only provisional approval because Taishin has made commitments to the FSC (e.g. to safeguard the interests of the customers and employees of Prudential Taiwan, to continue operating the business of Prudential Taiwan for a long time to come, and to carry out capital injections over the coming 10 years as the need arises at Prudential Taiwan), which are subject to approval by Taishin's board of directors. The deal will be consummated after the FSC reviews and approves the following items: (a) the meeting agenda and minutes of a meeting in which Taishin’s board of directors approves the commitments; (b) a contract between Taishin and a custodian institution, in which Taishin authorizes the institution to maintain custody and dispose of the shares of Chang Hwa Bank that owned by Taishin; and (c) an itemized statement of assets under custody, provided by the custodian institution.
The FSC has required Taishin to: (a) fulfill the commitments it made to the FSC, and to sell off aforementioned custody of assets in order to obtain funds needed to settle the share acquisition; (b) issue a material information disclosure in accordance with related regulations governing information disclosures; and (c) submit its commitments to FSC to its shareholders meeting.
Visitor：
1045
Update：
2021-06-08