CTBC Financial Holding Co., Ltd. (TWSE:2891) proposed to acquire 51% stake in Shin Kong Financial Holding Co., Ltd. (TWSE:2888) for approximately TWD 120 billion on August 20, 2024. The consideration consists of common equity of CTBC Financial Holding Co., Ltd. at a ratio of 0.3132 per common equity of Shin Kong Financial Holding Co., Ltd. A cash consideration valued at TWD 4.09 per share will be paid by CTBC Financial Holding Co., Ltd. The deal has been approved by the board. Transaction is subject to regulatory approvals. As of August 26, 2024, CTBC Financial Holding Co. filed an application with the Financial Supervisory Commission for approval to acquire Shin Kong Financial. The FSC, Taiwan's top financial regulator, confirmed later the same day that it had received the CTBC Financial application to acquire Shin Kong Financial. FSC has to express its stance on the tender offer by September 16, 2024. As of September 11, 2024, Taishin Financial Holding Co raised its terms to merge with Shin Kong Financial Holding Co via share swaps, in a bid to compete with a tender offer from CTBC Financial Holding Co, where the revised terms would suggest a merger price of TWD 14.18 per share, a 25% increase from TWD 11.32 per share it proposed last month, and a 5% premium over Shin Kong?s closing price at TWD 13.5 per share. The changes are intended to speed up the merger, which still needs approval from the Financial Supervisory Commission and separate shareholders? meetings next month. As of September 16, 2024, The Company received a letter from the Competent Authority that the application to invest in Shin Kong Financial Holding Co. by public tender offer is deferred due to several concerns. In response to the concerns of the Competent Authority on the Company's investment in Shin Kong Financial Holding, the Company will promptly evaluate the revision plan and submit to the BOD for discussion and approval. As of September 17, 2024, Taiwan?s financial regulator rejected the deal.

Morgan Stanley China acted as financial advisor to CTBC Financial Holding Co., Ltd.

CTBC Financial Holding Co., Ltd. (TWSE:2891) cancelled the acquisition of 51% stake in Shin Kong Financial Holding Co., Ltd. (TWSE:2888) on September 20, 2024. The transaction was cancelled after the Competent Authority's decision after discussion with the BOD.