China Development Financial acquires Cosmos
By John Liu, The China PostTAIPEI, Taiwan -- Cosmos Bank (萬泰銀行) will be acquired by China Development Financial (CDF, 開發金). The acquisition process is set to be completed in July.
February 11, 2014, 12:10 am TWN
CDF will acquire Cosmos Bank at NT$13.4 per share. CDF's share was worth NT$8.69 on average in the fourth quarter of 2013. With the merger, the combined value will be worth NT$23.094 billion.
CDF currently holds about 6.88 percent of Cosmos Bank's shares, and is Cosmos Bank's third largest majority shareholder. Share swaps were also part of the merger deal. Analysts said that the acquisition was made at less than NT$20 billion for CDF, and the deal would not have a sizable impact on CDF's cash flow.
A press conference was held at 7:30 p.m. yesterday to announce the merger. Both CDF President Paul Yang (楊文鈞) and Cosmos Bank President Richard Chang (張立荃) attended the event to promote the merger.
The acquisition is expected to benefit CDF by providing it with better capital leverage. CDF already possesses China Development Industrial Bank in addition to other securities and venture capital business groups.