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TAIPEI: Fubon Financial Holding Co. of Taiwan said Monday it would acquire the Taiwanese division of Dutch banking giant ING Life Insurance for US$600 million.
In a statement, Fubon Financial said it would issue new shares equivalent to a five per cent stake in the company to finance part of the acquisition along with cash. The two sides reached the agreement on Saturday.
The acquisition will see Fubon Life Assurance become the fourth largest firm in the Taiwanese life insurance market in terms of assets, the statement said, boosting its market share to 13.9 per cent from seven percent recorded in the first nine months of this year.
"ING Life is a well recognised company with good investment strategies, and sound asset quality and liquidity. I am happy it will join Fubon Financial," Fubon Financial chairman Daniel Tsai said in the statement.
In another statement ING emphasised its commitment to realising its growth ambitions in Asia.
"In addition to our five percent shareholding in Fubon, we remain committed to the Taiwanese market through our fund management, real estate and wholesale banking activities," said ING's executive board member Hans van der Noordaa.
The transaction is subject to regulatory approval and is expected to close by the end of the first quarter of 2009.
The Dutch government announced at the weekend it would inject US$13.4 billion into ING, one of the world's 20 biggest banks, in the latest global finance crisis rescue.
- AFP/yb
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