Breaking News, World News and Taiwan News.

FSC approves SinoPac-Pacific Securities merger

TAIPEI--The Financial Supervisory Commission (FSC) said yesterday it has approved a plan submitted by SinoPac Securities to merge with Pacific Securities.

The merger is expected to boost the economies of scale of SinoPac Securities, a securities business arm of SinoPac Financial Holdings Co. Ltd., and improve its competitiveness, the FSC said.

After the merger, the number of SinoPac Securities' outlets in Taiwan is expected to rise from 49 to 59, the brokerage said.

The FSC said the merger is expected to help SinoPac Securities gain about a 5.5 percent share of the local brokerage business, pushing up its ranking from fifth to fourth place.

The merger is scheduled to be completed Nov. 12, according to the FSC.

On June 22, the board of SinoPac Securities approved the merger proposal, in which Pacific Securities shares will be bought for NT$3.69 billion (US$124 million), or NT$12.65 per share.

Pacific Securities' board also gave the green light for the plan.

SinoPac Securities said it will use cash to complete the merger.

In addition to the expanding the brokerage business, the merger is expected to push SinoPac Securities into fifth place among Taiwan's largest securities trading loan providers and increase its market share to 6.18 percent, the company said.

In the local futures trading market, SinoPac said, it will gain a6.44 percent share to become the third largest futures trader.

In 2011, Pacific Securities posted NT$362 million in net loss, or NT$0.87 in loss per share. But, in the first quarter of this year, the brokerage recorded NT$28.73 million in net profit, or earnings per share of NT$0.01.

At the end of March, the book value per share of Pacific Securities was NT$7.93. As the brokerage disposed of a commercial property located in downtown Taipei for NT$1.94 billion in May, its book value per share is expected to rise to NT$11.8.

Write a Comment
CAPTCHA Code Image
Type in image code
Change the code
 Receive China Post promos
 Respond to this email
Subscribe  |   Advertise  |   RSS Feed  |   About Us  |   Career  |   Contact Us
Sitemap  |   Top Stories  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |   Arts & Leisure  |   Health  |   Editorial  |   Commentary
Travel  |   Movies  |   TV Listings  |   Classifieds  |   Bookstore  |   Getting Around  |   Weather  |   Guide Post  |   Student Post  |   Terms of Use  |   Sitemap
  chinapost search